Pet food inflation has leveled off, with year-over-year price growth at around 0% as of April 2025, but overall pet industry costs continue rising. According to the latest Petflation report from John Gibbons at PetBusinessProfessor.com, pet industry inflation reached 2.2% in May 2025, up from 1.9% in April — the highest rate in nearly two years.
The report reveals a tale of two markets: while pet food prices have stabilized and even declined slightly, pet services are driving the overall inflation surge.
Pet food prices show relief
Pet food experienced minimal price movement in May, with costs rising just 0.01% from April and declining 0.5% compared to May 2024. This marks the 14th deflationary month out of the last 15 for pet food prices.
The pet food deflation contrasts sharply with grocery store food inflation, which reached 2.2% year-over-year. According to Gibbons' analysis, 99% of pet food's total inflation since 2019 occurred during the 2021-2023 surge, with prices now stabilizing.
Services drive overall 'petflation'
While product prices moderate, pet services are pushing overall petflation higher. The combined consumer price index for pet service segments reached 4.9% in May, while pet products inflation registered just 0.2%.
Veterinary services led the increases with a 0.5% monthly rise, followed by pet services at 1.1% and supplies at 0.5%. All pet categories except food reached record-high prices in May.
Market context and consumer impact
Pet industry inflation remains below the national Consumer Price Index of 2.4%, but the gap is narrowing. Pet services, including veterinary care and grooming, remain costly, with prices up 4.6% year over year, according to recent industry analysis.
Current pet prices sit 23.9% above 2021 levels and 28.4% higher than 2019, representing significant cumulative increases that continue to impact consumer spending patterns.
Looking ahead
The report indicates pet industry pricing has entered a more volatile phase, with prices rising for six consecutive months through May 2025. Monthly price movements have become less predictable, alternating between increases and decreases throughout 2024 and early 2025.
Industry professionals should expect continued pressure from service-related costs while monitoring whether pet food's deflationary trend continues or reverses in the coming months.
"Supplies will likely see a reduction in purchase frequency and some pet parents may even downgrade their pet food," said Gibbons in his analysis. "Products will see a strong movement to online purchasing and private label. Strong, cumulative inflation has a widespread impact, but tarifflation can hit even harder. Supplies would likely be the most impacted by new high tariffs. We'll see."
Data sourced from the latest Petflation report by John Gibbons at PetBusinessProfessor.com, tracking Consumer Price Index data for pet industry segments compared to national inflation trends.
