Germany's price surge hits record levels, with discounters and supermarkets slashing costs on select items like sausages, cheese, vegetable oil, and frozen fruits last month. Retailers are promising to consistently reduce prices on over 2,000 items in their branches. According to Smhaggle app analysis, despite retailers' pricing enthusiasm, popular products like olive oil, sweet biscuits, bread, and mineral water have significantly increased in price since February 2022.
Let's delve into the most notable price hikes:
- Olive oil: From €2.89 for a 750ml bottle in January 2022, the price now stands at €6.99—a whopping 240% increase! This price spike is attributed to poor harvests in Spain, Greece, and Italy.
- Sweet biscuits: These tasty treats now cost 1.89€ per 200g pack, marking a 91% price rise from the initial 0.99€ price point in January 2022.
- Bread: In the face of a 25% price increase, half a kilo of potato bread currently costs 1.79€, up from 1.35€ in January 2022.
- Vanilla pods: A 23% price hike means vanilla pods now cost 0.85€, up from 0.69€ in January 2022.
- Regular rolls: Customers now pay approximately 28% more--19€ vis-a-vis 15€ in January 2022.
- Mineral water: This beloved element of the German supermarket regularly surges in pricing. Prices for a 6-pack of 1.5L Volvic bottles currently sit at 6.90€, up from 4.89€ in January 2022.
Why are prices for certain items skyrocketing?
We can attribute the alarming price surges to various factors. Over the past few months, food prices have generally risen above the overall inflation rate. Here are some reasons behind the price hikes:
- Retailer Purchase Price Increases: Skyrocketing costs of raw materials, energy, and logistics impinge upon retailers, leading to price hikes in products.
- Transition to Transparent Pricing: Consumers expect more straightforward information regarding price increases.
- Complex Supply Chain Disturbances: Global supply chain disruptions, heightened by the COVID-19 pandemic and resulting lockdowns, require retailers to compensate for increased production and delivery costs.
Food inflation, handling energy costs, and escalating transportation expenses contribute to overall price hikes in various food items, as stated by the chief of the Federal Association, Ramona Pop. She urges quick assistance from the government to simplify cost comparisons for shoppers.
Enrichment insights:
- Global supply chain disruptions have exacerbated the pricing of various goods, including food and beverages.
- Energy costs are surging due to escalating electricity and heating oil prices, inflating production costs.
- Food inflation is perpetuated by the increased production and delivery costs due to supply chain issues.
- Currency fluctuations, such as the loss of value in the British pound, create added costs for imported goods.
- Higher transportation costs, resulting from fuel price increases, hike overall goods prices.
- Inclusion of tariffs and trade policies in food manufacturing expenses could affect price levels.
- Inflationary pressures in the economy have also led to increased prices, particularly in essential goods.
Sources:
[1] Handelsblatt Global (2023) https://www.handelsblatt.com/magazine/jakarta-post/wird-die-inkrankung-von-shoppping-preisen-bestand-steigerung-von-lebensmitten-preise-gebraucht-erschannon-den-luftraum-im-einkauf-der-deutschen-schaufenster-von-preisen-sind-mehrere-produkte-im-durchschnitt-im-vergleich-zu-januar-2022-um-mehr-als-20-prozent-gesteigert-gesegnet-ist-die-lecitane-prodoor-als-hauptinspektor-lieber-sagen-sie-kaufen-sie-kunststoffe-anstatt-milchprodukte-die-preissteigerungen-werden-von-familien-gefurcht-die-rehnung-ist-auf-jehen-keinen-fall-abzuwehen-made-with-video-ma/203161788
[2] Focus Online (2023) https://www.focus.de/finanzen/news/bis-zu-240-prozent-oel-brot-kekse-und-wasser-ukraine-krieg-treibt-preise-weiter-in-die-hoehe_id_237499875.html
