Economy
12 April
Inflation cooled to 5% in March, the slowest increase since May 2021
But food and rent prices remained elevated, the Consumer Price Index showed

But food and rent prices remained elevated, the Consumer Price Index showed
Inflation’s cooldown accelerated in March, even as food and rent prices remained high.
The Consumer Price Index from the U.S. Bureau of Labor Statistics showed the following for March 2023:
Year-over-year, inflation increased 5%. That’s down significantly from a 6% increase in February. It's the lowest rate since May 2021.
Month–over-month, inflation was up 0.1%, which is also a slowdown from 0.4% in February.
Core inflation, which leaves aside the volatile food and energy categories, increased 5.6% year-over-year.
Food at home, which includes groceries, saw a 0.3% decrease on the month. That was the first time this measure fell since September 2020. Year-over-year, food at home rose 8.4% over the last 12 months, paced by a 13.6% increase in cereals and bakery products.
Shelter, which includes rent, continued to be the primary driver of inflation, as the 8.2% year-over-year increase in this category accounted for 60% of core inflation.
Inflation in other key consumer goods categories, as measured on a year-over-year basis, includes:
(Source: Consumer Price Index/US Bureau of Labor Statistics)
What does this mean for the consumer economy? The inflation report comes after the Federal Reserve has undergone a monthslong campaign to raise interest rates as it seeks to bring prices down. The Fed’s goal is to bring inflation down to 2%. The report suggests the job is not done yet, but is nevertheless a sign that the increase in prices is slowing more significantly than in recent months.
But there's a tradeoff. The Fed’s aggressive moves to bring down prices also cool the economy as a whole. Combined with Friday’s jobs report that showed the smallest gain in new jobs since December 2020, there appears to be mounting evidence that the impact of the rate increases is taking hold. The question remains as to whether they will take a toll on households – and consumer demand– in the process of bringing prices down.
The report will be taken as good news, but it’s worth remembering that inflation continues to have an impact on households. While price increases are decelerating, the cost of essentials like food, gas, and rent is still high. That means “inflationary behaviors are still prevalent among Americans,” notes GlobalData Managing Director Neil Saunders.
“Along with inflation, households are feeling the impact of higher interest rates which are designed to cool prices but are pushing up variable mortgage rates and increasing interest on credit card and other debts,” Saunders said. “This means consumers are currently in the worst of both worlds, with both prices and debt servicing costs rising. The hope is that one of these issues, inflation, resolves itself over the course of this year – but it looks like this will only happen very gradually, meaning the household squeeze will continue for some time to come.”
Dealboard has funding and M&A updates from ecommerce aggregators and forecasting software.
Hunter is joining ABG's portfolio. (Courtesy photo)
This week, the aggregator space is active with M&A, IKEA is ready to roll out newly-purchased warehouse management software and Authentic Brands Group acquired a boot icon. Plus, there’s new investment to report for YouTube influencer Emma Chamberlain’s coffee brand and retail forecasting.
Here’s a look at the latest deals:
Chamberlain Coffee, the consumer brand founded by YouTube influencer Emma Chamberlain, raised $7 million in new funding.
The financing included backing from existing investors including Blazar Capital, Chamberlain and United Talent Agency. New investors include Volition Capital, Electric Feel Ventures, L.A. Libations and Noah Bremen, founder of PLTFRM.
The new funding follows the launch of a Ready-to-Drink (RTD) product and coffee pods. Previously, the brand raised a Series A in August 2022.
"Creating a uniquely inviting coffee brand has been my dream for so long now, and having key investors back us allows us to build Chamberlain Coffee in ways that feel fresh and exciting,” said Chamberlain, in a statement. “There are so many products I am eager to develop and projects I'm excited to get working on. With such an incredible team and group of investors I am more excited than ever to see what the future holds for Chamberlain Coffee."
Impact Analytics, a software company for retail supply chain and merchandise planning, raised new funding from Vistara Growth.
The new investment, the amount of which was not disclosed, comes after Impact raised funding in February 2021 and October 2022 from Argentum.
The funding will help Impact Analytics further develop its Impact Analytics SmartSuite product portfolio, which is designed to help optimize forecasting, merchandising and end-to-end lifecycle pricing. Rather than the traditional forecasting approach of basing decisions on the preceding year, Impact Analytics applies a model that includes 150 variables from internal and external sources, while combining recency and history. Clients include BJ's Wholesale Club, Dick's Sporting Goods, Puma and Tapestry.
Selva Ventures, a venture capital firm focused on consumer brands that promote healthier living, closed its second fund at $34 million, TechCrunch reported.
With the new funding, Selva will invest in brands across categories including health, wellness, beauty and personal care. The fund expects to write checks of $1-2 million in seed and Series A startups, while assisting in areas like finance, operations and retail partnerships.
Backers of the second fund include Unilever Ventures, PagsGroup and Obelysk.
Nautica and Forever 21 owner Authentic Brands Group acquired the intellectual property of Hunter, a 160-year-old British outdoor lifestyle brand known for its Wellington boots.
With the deal, ABG appointed longtime partners Batra Group and Marc Fisher to execute retail and ecommerce operations, as well as continue to expand the brand in the UK and U.S., respectively.
“At the intersection of fashion and outdoor, Hunter introduces another elevated global brand to Authentic’s diverse Lifestyle portfolio,” said Authentic CEO Jamie Salter, in a statement.
Terms of the deal were not disclosed.
DTC cookware brand Great Jones was acquired by Meyer Corporation, a global company that also owns kitchen brands such as Farberware and KitchenAid.
Founded in 2018, Great Jones grew with stylish, colorful cookware that stood out on Instagram feeds. CEO Sierra Tishgart will remain in the lead role, and take on an expanded role as the creative director of Meyer. Previously, Meyer was both a supplier and minority investor in Great Jones through fundraising. Now, Meyer will support product expansion and international retail development.
"I have long admired Meyer's expertise in our category, and I've had the personal pleasure of getting to know the Meyer family and team over several years," said Tishgart, in a statement. "I am ecstatic about the opportunities their support will unlock for Great Jones. We've operated as a small team of less than 10 throughout the company's four-year history, and this collaboration will strengthen our technical capabilities and secure our reach for many, many years to come."
The investment arm of IKEA parent Ingka Group acquired the warehouse management software platform Made4Net.
As a result of the deal, Made4Net’s software will be deployed across IKEA’s 482 stores and fulfillment centers. Made4Net will continue to operate as an independent subsidiary of Ingka, with a headquarters in New Jersey. CEO Duff Davidson will remain at the helm of the company.
“Our business currently requires a better fulfillment operations system with more accurate data that better supports handling for our customers,” said Tolga Öncu, head of retail at Ingka Group, in a statement. “Our goal is to become leaders of life at home, serving more people in an omnichannel reality, whenever and however customers choose to meet us.”
European ecommerce aggregator SellerX acquired Elevate Brands, a U.S.-based aggregator.
The combined companies will be known as SellerX Group. It will comprise a portfolio that includes 80 Amazon-native private label consumer brands in categories including sports and outdoors, home, mobile accessories, pets and consumables. The portfolio will span over 40,000 products.
With the deal, SellerX Co-CEOs Philipp Triebel and Malte Horeyseck will lead SellerX Group, while Elevate Brands cofounders Ryan Gnesin, Jeremy Bell and Robert Bell will remain in key leadership positions.
“This acquisition combines our know-how and diversified portfolios of strong brands with a market-leading technology platform and strong operational infrastructure,” said Triebel, in a statement. “By leveraging our combined strengths, I am convinced we are well-positioned to drive further consolidation in the industry.”
Ecommerce aggregator Society Brands acquired Wolf Tactical, a tactical gear company.
Founded in 2017 by Tim Wu, Wolf Tactical makes products including DC belts, range belts to weighted vest and tactical backpacks.
"I started Wolf Tactical by myself as a side hustle with very limited knowledge of business and entrepreneurship. A combination of hard work and relentless learning allowed me to build it into a multi-million-dollar business," said Wu who will remain as brand president, in a statement. "With the help of Society Brands, I have access to untapped potential that I would not be able to achieve by myself.”