Consumer Staples: Cost of Consumption: Inflation tracker

Research evidence excerpt

Consumer Staples: Cost of Consumption: Inflation tracker

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Consumer Staples

Cost of Consumption: Inflation tracker

Industry Overview

Inflation reaccelerates: Staples input cost monitor 18 May 2026

As inflation risk regains focus and input costs accelerate, we introduce a new inflation High Grade Credit

tracker to monitor key raw materials, ingredients, packaging and transportation/freight, United States

which together represent a meaningful portion of Consumer Staples cost of goods sold. Consumer Staples

Costs have become increasingly volatile in recent months, driven by energy price Brian Callen, CFA

volatility, ongoing geopolitical conflict affecting trade and logistics, global supply‑chain Research Analyst

disruptions, weather‑driven impacts to agricultural yields and structural protein market BofAS+1 646 855 8987

dynamics (including herd liquidation & feed costs). As a result, many commodities have brian.callen@bofa.com

seen double-digit % moves on both a spot and forward basis, with select inputs Avantika Pedamallu

Research Analyst

exhibiting price swings well outside historical norms. In aggregate, Food CPI increased BofAS

+3.2% y/y in April including Food at home +2.9% y/y (+0.7% m/m) led by fruits & +1 646 855 7557

avantika.pedamallu@bofa.com

vegetables, nonalcoholic beverages (coffee), and meats. Our intent is to provide a

consolidated view of these trends and frame potential implications for pricing, elasticity,

and margins for the sector. Exhibit 1: Key commodity tracker

Notable price moves: Oil(s), grain vs. cocoa, coffee Oilincrease& Aluminum has seen largest YTD

The most inflationary price action has been from energy or oil-linked inputs due to the 1mo YTD

Iran war and disruption in the Strait of Hormuz.