Bank of America Says Food and Beverage Inflation Rate Rose to 3.7% in February

LootboxPhobia · 2026-03-24T11:42:31+00:00

According to Bank of America's Trendspotter report, cost inflation for food and beverage companies accelerated in February, with spot inflation rising to 3.7% year-over-year. Rising prices in turkey, vegetables, and milk were the main drivers, while eggs, cocoa, and orange juice experienced deflation. Commodity prices are expected to be impacted by the Iran conflict going forward.

LootboxPhobia

2026-03-24 11:42:31

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Investing.com – According to the latest Trendspotter report released by Bank of America, cost inflation for food and beverage companies accelerated in February.

The spot inflation rate for companies covered by Bank of America in the packaged food and beverage sector increased by 40 basis points month-over-month in February, reaching 3.7% year-over-year.

This low single-digit spot inflation rate was mainly driven by rising turkey prices due to avian flu, as well as increases in vegetable and milk prices. Deflationary items include eggs, cocoa, and orange juice.

Bank of America estimates that the T-9 hedge basket rose by 3.8% year-over-year in February, 2 basis points higher than the previous month.

The bank stated that major commodities to watch by 2026 include cocoa, coffee, beef, and aluminum.

Bank of America noted that the February results do not reflect recent price increases caused by the Iran conflict, which the bank expects will exert upward pressure on prices next month.

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