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Economists predict the US will fall into recession during the next 12 months.
June 1, 2023
By: TOM BRANNA
Chief Content Officer
Finally, there’s good news on the inflation front. Last month, the Consumer Price Index rose 4.9% from April 2022 to April 2023. It was the smallest 12-month increase since April 2021. From April 2022 to April 2023, consumer prices for all items, less food and energy, increased 5.5%. Consumer prices for food rose 7.7% for the year ended April 2023, while consumer prices for energy fell 5.1%. Within all items less food and energy, shelter prices rose 8.1%, following an increase of 8.2% for the year ended March 2023. But be careful for what you wish. Inflation fears give way to recession fears. Most economists predict the US will fall into recession during the next 12 months. If inflation finally falls—along with the economy—how long will marketers maintain price increases? Many FMCG companies increased prices across the board this year. Procter & Gamble, for instance, boosted prices 10% across its brands for three months ended March 31. The largest increase came in the fabric and home care category. It was the second straight quarter of double-digit hikes at P&G. Meanwhile, in the prestige beauty space, Estée Lauder Cos. blamed inflation for a 12% decline in fiscal Q3 sales. Clearly, consumers and companies function better without inflation…or recession; aka a “Goldilocks Economy.” Fast-moving consumer goods function better with the right ingredients and the right packaging. This month is our annual Buyers’ Guide issue. It includes hundreds of raw materials, packaging components and services to help you create top-performing products. You'll find the Guide here. The professional hair care category is back to a new normal. After a brutal couple of years due to shop closures, stylists and their suppliers have figured out a better way to conduct business in a post-pandemic world. Our coverage begins here. Also this month, we look at the latest packaging concepts that are impacting the personal care space. Sustainability is top-of-mind for every player, big or small. Read more about their strategies starting here. We hope you enjoy this issue of Happi. As always, we welcome your comments and suggestions. Tom Branna VP/Editorial Director tbranna@rodmanmedia.com
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