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National Brands, Private Labels, and Food Price Inflation

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  • Volpe, Rickard James

Abstract

This article investigates the extent to which national brand and private label (store brand) prices behave differently as food price inflation changes. Empirical tests using a range of indices support the hypotheses that rising commodity and fuel prices lead to relatively larger surges in private label prices. When food prices are rising or high, the average price difference between national brands and private labels shrinks. The findings have implications for understanding the welfare effects of private labels. Moreover, they suggest that food price inflation is stronger for low-income households as food prices rise.

Suggested Citation

  • Volpe, Rickard James, 2014. "National Brands, Private Labels, and Food Price Inflation," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(4), pages 575-591, November.
    • Handle: RePEc:cup:jagaec:v:46:y:2014:i:04:p:575-591_02
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    Cited by:

    1. Secor, William & Çakır, Metin, 2016. "Impacts from a retail grocery acquisition: Do national and store brand prices respond differently?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235945, Agricultural and Applied Economics Association.
    2. Dekimpe, Marnik G. & van Heerde, Harald J., 2023. "Retailing in times of soaring inflation: What we know, what we don't know, and a research agenda," Journal of Retailing, Elsevier, vol. 99(3), pages 322-336.
    3. Sun, Shaoyan & An, Henry & Marcoul, Philippe Andre, 2018. "Retailers' private labels strategy under the weather effect," 2018 Annual Meeting, August 5-7, Washington, D.C. 273820, Agricultural and Applied Economics Association.

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