All pet industry price segments hit record highs in March 2026, with petflation jumping to 4.3% year over year — its highest rate since December 2023 — as the national Consumer Price Index also climbed to 3.3%, according to data from the U.S. Bureau of Labor Statistics analyzed by John Gibbons, president, Pet Business Professor.
Petflation accelerates past national rate
The March petflation rate of 4.3% rose sharply from 3.3% in February, representing the steepest monthly acceleration since 2023. The national CPI increased to 3.3% from 2.4% in February, driven by a 1% month-over-month lift, its highest rate since April 2024.
"In March, the CPI and all pet segments set price records. This hasn't happened since September 2022," Gibbons said.
Petflation now stands at 3.3 times the 2024-to-2025 rate, is 30.3% above the current national CPI and is 43.3% higher than the 3.0% average March rate recorded since 1997. Pet prices are 33.8% above 2019 pre-pandemic levels and 29% above 2021 levels.
Not all price movement was upward. Grocery prices edged down 0.04% from February, and grocery inflation eased to 1.9% year over year from 2.4%. Medicinal drug prices remain in deflation territory at -0.2% versus 2025, and electronic products are down 6.7%.
Pet food prices reach new record
Pet food prices rose 0.4% from February to March and set a new record high. Year-to-date, pet food inflation stands at 1.7%, up from 1.4%, and a significant reversal from the -0.5% seen in 2024-to-2025. Even so, the current rate remains below the 3.0% pace recorded in 2023-to-2024.
Pet food prices were essentially flat from April 2020 through September 2021, holding near pre-pandemic December 2019 levels. They then climbed and peaked in May 2023 before entering a volatile pattern. Approximately 93% of pet food's cumulative price increase since 2019 occurred in 2022 and 2023.
Pet food carries a 7-year average annual inflation rate of 3.4% since 2019, placing it below the overall national average of 3.8% but above the rates for medical services and pet supplies.
Pet supplies flip from deflation to inflation
Pet supplies prices were a primary driver of the overall petflation increase, flipping from -1.2% deflation in 2025 to +3.1% inflation in March 2026. Supplies posted the largest month-over-month gain among pet segments, up 1.7% from February.
Despite the recent acceleration, pet supplies carry the lowest 7-year average inflation rate among pet categories at 1.9% since 2019. Cumulative supplies prices remain the least elevated of all pet segments at 15.4% above 2019 levels.
Veterinary remains the long-term inflation leader
Veterinary services remain the cumulative inflation leader since 2019 at +55.5%, well ahead of gasoline (+46.0%), pet services (+43.3%), restaurants (+39.3%) and haircuts (+37.3%). The vet category also posted the highest 7-year average annual inflation rate at 6.5%.
Veterinary and pet services prices each rose 0.4% from February to March. While vet inflation has slowed from its peak — it is the only category where the 2025-to-2026 rate is below the 2024-to-2025 rate — Gibbons noted that consumers have largely absorbed veterinary cost increases by paying more rather than reducing visit frequency. That pattern, he said, may be shifting.
Outlook: consumer behavior shifts expected
"Inflation is cumulative, and pet prices are 29% above 2021 and 33.8% higher than 2019. Those are big lifts," Gibbons said. "Since price and value are the biggest drivers in consumer spending, inflation will affect the pet industry across the board."
Gibbons said the impact will vary by segment. Pet services, driven heavily by high-income consumers, will be the least affected. Veterinary will likely see continued pressure on visit frequency. For product categories, he expects a more complex response.
"Supplies are more discretionary, so we will likely see a reduction in purchase frequency," Gibbons said. "In pet food, the most essential segment, some pet parents may choose to downgrade. But the biggest impact in both product segments will be a strong movement toward online purchasing and private label."
Gibbons pointed to Global Pet Expo 2025 and SuperZoo 2025 as early indicators, noting a large number of exhibitors offering OEM services. That trend continued at Global Pet Expo 2026. "Strong, cumulative inflation has a widespread impact," he said. "We'll continue to monitor the situation."
