Although pet prices rose 0.1% in July 2024, overall inflation rates fell slightly to 2.9%, according to John Gibbons of PetBusinessProfessor.com in his July report.
The national year over year monthly Consumer Price Index (CPI) rate of 2.9% is down from 3.0% and now below the 22>23 rate. And only 34% of 21>22.
“Petflation has definitely slowed in 2024,” stated Gibbons. “July was 38% below the average for the month and 34.5% lower than the National CPI. This is about the same as it was back in 2021”
2022 compared to 2024
- U.S. CPI – Prices are +0.1% from June. The YOY increase is 2.9%, down from 3.0%. It peaked at +9.1% back in June 2022. The targeted inflation rate is <2% so we are still 45+% higher than the target. After 12 straight declines, we had 2 lifts, a stable month, 3 consecutive drops and now 5 of 8 with drops – improving. The current rate is below 22>23 but the 21>24 rate is still +15.2%, 67.3% of the total inflation since 2019. Inflation was low in July 2021.
- Pet food – Prices are -0.03% vs June and -0.04% vs July 23, up from -0.2%. They are still significantly below the Food at Home inflation rate, +1.1%. The YOY drop of -0.04% is being measured against a time when prices were 22.9% above the 2019 level and the current decrease is still far less than the -0.7% drop from 2019 to 2020. The 2021>2024 inflation surge has now generated 100% of the total 22.7% inflation since 2019.
YTD -- 2022 compared to 2024
- U.S. CPI – The 23>24 rate is 3.2%, the same as June, but also down 30% from 22>23 and 61% less than 21>22. It is also 24% below the average YOY increase from 2019>2024, but it’s still 45% more than the average annual increase from 2018>2021. 74% of the 22.7% inflation since 2019 occurred from 2021>24. Inflation is a big problem that started recently.
- Pet food – YTD inflation is 1.1%, down from 1.3% in June and 92% less than the 22>23 rate. Now, it is also 85% lower than 21>22 and 10% below the average rate from 2018>2020. Pet Food has the highest 22>23 rate on the chart and remains in 2nd place in the 21>24 rates. Deflation in the 1st half of 2021 kept YTD prices low then prices surged in 2022 and especially in 2023. 95% of the inflation since 2019 occurred from 2021>24.
Update: Pet food producer price index (PPI)
The retail price changes usually mirror the dog and cat PPI but lag slightly. They peaked in May 23, fell slightly in Jun>Aug, turned up in Sep/Oct, flattened in Nov, fell in Dec>Feb, turned up in March, and fell in Apr>May, then rose in June and fell a little in July.
Prices only increased <1% since March 2023, showing 16 months of stability.
Pet Food Retail CPI is -0.04% from July 2023, and -0.03% versus June 2024. The “Other pet food” category is -10.2% from July 2023.
