“Petflation” — meaning inflation in the pet products and services sector — hit 4.7% in January, according to a new report from John Gibbons, the Pet Business Professor.
That was down from 5.1% in December but significantly higher than the overall U.S. inflation rate of 3.1% for the month.
In a blog post, Gibbons outlined the specific situation for various segments of the pet industry, including food, supplies, services and veterinary.
He noted:
Petflation is slowing, but it is still strong, with the 4th highest rate for January and 2023 had the 2nd highest annual rate in history. It is also 1.5 times the National CPI. In 2021 it was only 75% of that rate. Even if it slows to 0%, you can’t ignore the fact that inflation is cumulative. Pet prices are 20.9% above 2021 and 26.1% higher than 2019. Those are big lifts. Since price/value is the biggest driver in consumer spending it is likely to affect the Pet Industry. The Non-Vet Services segment will be the least impacted as it is the most driven by high income CUs. Supplies and Veterinary will likely see a reduction in purchase frequency. Food is the most needed segment so the response will be complex. It could include a movement to online shopping, switching to private label or even downgrading the quality of food.
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