The study, which was released Monday, Feb. 4, showed that more than half of manufacturers processed a price increase in 2018. These price hikes averaged 7.8 percent.
The departments that saw above-average price hikes include meat, seafood, pet care, deli, baby care and household care. Meanwhile, the price increases for dairy, alcohol, health and beauty aids, grocery, bakery items and produce were considered below average.
Acosta also noted that the trend is anticipated to continue for the next year or two.
The cost increases are attributed to a variety of factors, including elevated costs for manufacturing supplies like gasoline, diesel and aluminum. The report also pointed to a trucking line-haul rate increase that resulted from higher demand and a shortage of drivers.
"At times, manufacturers are able to absorb, delay or minimize cost increases, but eventually it becomes necessary to negotiate price increases with retailers," said John Clevenger, senior vice president and managing director of strategic advisers at Acosta. "Seventy-six percent of retailers have pushed back on or have been hesitant to accept price increases. However, we have found that increases are not necessarily a negative, as long as they are executed fairly and equitably across all channels of retail with full transparency."
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