Why haven't grocery prices fallen even though inflation has eased?

Because of the 'rockets and feathers' effect: food prices rose rapidly ('rockets') during and after the pandemic due to supply shocks like the war in Ukraine and bird flu, but descend slowly ('feathers') as retailers are reluctant to lower prices on high-cost inventory, seek to preserve pandemic-era profit gains, and face reduced competitive pressure once consumers stop deal-hunting as prices begin to ease.

What are consumers doing in response to persistently high grocery prices?

Shoppers are buying fewer items overall, switching from name-brand to store-brand products—whose sales hit a record $282.8 billion last year—and adjusting behavior due to high gas prices, increased GLP-1 drug usage, and reduced government food aid, all of which constrain grocery spending.

The 'Rockets and Feathers' Effect: Inflation Eases but Grocery Bills Do Not

Jul 26, 2026

U.S. grocery prices remain elevated despite easing inflation due to the 'rockets and feathers' dynamic driven by climate shocks, tariffs, and retailer margins. Major retailers like Walmart are cutting prices, though consumers shift toward store brands amid persistent cost pressures.

apnews

2026-05-21

Kroger Plans Price Cuts as New CEO Looks to Regain Shoppers

2026-06-18

Kroger Beats Quarterly Sales Estimates

2026-07-01

Kroger to Buy Retailer Giant Eagle in $1.65 Billion Deal

2026-07-26

The 'Rockets and Feathers' Effect: Inflation Eases but Grocery Bills Do Not

The 'Rockets and Feathers' Effect: Inflation Eases but Grocery Bills Do Not

FAQ