In July this year, the most frequently purchased products increased in average by 3.9% YoY. This is shown by an analysis of 69.1 thousand prices from 31.8 thousand stores. The price hike in June was 3.1%, whereas in May, it was 2.9%. Also, it can be seen that out of 17 monitor categories, 13 showed a YoY increase. This time, non-alcoholic beverages saw the steepest increase, with a 15.6% YoY increase. In second place were food additives with an 11.2% YoY rise. In third place are sweets and desserts, with a positive result of 9.3% YoY. We can also see household chemicals and bread in the TOP5 with increases of respectively 8.7% and 6.4% YoY.
Last month, daily shopping became more expensive again, by an average of 3.9% YoY. This is according to the regularly published report titled “RETAIL STORE PRICE INDEX”. An analysis was made of 69.1 thousand prices from 31.8 thousand stores belonging to 52 retail chains. For comparison, in June the increase (calculated using the same methodology) was 3.1%, in May – 2.9%, and in April – 2.4% YoY.
“The dynamics of price increases in stores ceased to slow and this observation is in line with the overall inflation increase observed in recent months. These changes are not particularly surprising to economists. We can definitely speak of a slow but clear reversal of the trend in April 2024, the main reason for which the thawing of VAT rates on food” – notes Dr. Tomasz Kopyściański from WSB Merito University.
According to the collected data, in July, 13 out of 17 monitored categories showed a YoY increase. The same was true in June and May. Recently, non-alcoholic beverages were on the first position in the ranking of high prices with an average YoY increase of 15.6%. In June, this category increased by 4.9%, and in May – by 6.3% YoY.
“Undoubtedly, the seasonal factor is key, resulting from increased demand for non-alcoholic beverages during summer high temperatures. But the increase in prices in this category is also influenced by the increase in the cost of plastic packaging. To this are added higher than a year ago prices of some fruits, such as oranges. All of this makes juice production more expensive,” explains Dr. Kopyściański.
Food additives were the second most expensive product group with their prices rising by 11.2% YoY. It is worth adding that in June they increased by 6.2%, and in May – by 5.9% YoY. Therefore, we can see that in this case also the dynamics of price increase has started to rise.
Sweets and desserts came in third place. Their prices rose by 9.3% YoY. In the previous edition, these rose by 11.2% YoY. In May, broadly understood sweets showed a year-on-year rise in prices of 12.9% YoY.
In fourth place in the ranking was household chemicals with an average YoY growth of 8.7%. In June, the YoY increase was 9.2%, and in May, it was 9.7%. We can see that the price increase dynamics in this category is starting to decrease slightly, but these are still large values.
In fifth place was bread with an average increase of 6.4% YoY. In June, it increased by 5.3% YoY, and in May by 4.9% YoY. As Dr. Faliński explains, the main factors influencing the rise in bread prices are rising energy costs and increasingly costly materials for the production of raw materials, such as fertilizers, protective substances, fuel, and others. In addition to this, excessively long supply chains result in increasing margins.
Outside of the TOP5 more expensive categories are personal hygiene products with a 6.2% YoY increase. In June and May, their prices increased by 5.1% and 3.1% YoY respectively. Fruits are also on the rise with a result of 3.8% YoY. In the two previous months, they increased by 1.8% and 2.2% YoY. Dairy prices also rose – by 3.6% YoY. Previous increases were 1.1% and 1% YoY.
Additionally, children’s item prices also increased by 3.5% YoY. In previous months, the YoY increases in this category were 1.5% and 4.2%. Recently, fish prices grew by 2.8% YoY, before – by 4.8% and 0.5% YoY. Deli meats in July jumped by 2.3% YoY. The previous increases were 4.6% and 1.2% YoY. Meanwhile, meat hiked by 2.2% YoY. The two previous increases were 0.9% and 1.9% YoY. The ranking of more expensive categories closes with stimulants (such as tea, coffee, beer, and vodka) with a result of 1% YoY. In June, they increased by 4.7% YoY, and in May – by 2.6% YoY.
“Price increases in most categories result from increased production costs… For instance, in the case of deli meats, they are higher than in the meat category, so their prices are growing faster. Additionally, logistics prices are on the rise,” summarizes Prof. Sławomir Jankiewicz from WSB Merito University.
Source: https://managerplus.pl/dynamika-wzrostu-cen-w-sklepach-przestala-hamowac-69653
