According to an analysis of nearly 77,000 prices, store prices in January of this year were on average 5.9% more expensive than a year earlier. This is indicated by the cyclical report “Retail Price Index”. This is another consecutive month with an increasingly strong price growth dynamic. Additionally, out of the 17 monitored categories, only one was cheaper than a year ago. The report also shows that sweets and desserts became the most expensive, with their prices rising by 10.4% year-on-year. Fruit prices jumped by 10.2% YoY, fats by 9.7%, and non-alcoholic beverages by 7.8%. Meanwhile, the price of bread increased by 7.7% YoY. Experts commenting on these data suggest that the price increase process in stores may continue for several more months.
The latest edition of the “Retail Price Index” report, authored by UCE Research and WSB Merito University, reveals that daily shopping costs in January this year increased by an average of 5.9% YoY. For comparison, the YoY increase in December (calculated by the same method) was 5.6%, and in November – 5.5%. This was shown by the analysis of nearly 77,000 retail prices.
According to predictions, we are now on the path of price growth, which should end in March. At that time, store prices will increase by over 6% YoY. The monthly dynamics will decrease, but a significant change will only come at the end of the year. Experts talk about the ongoing inflation crisis that will keep prices rising for several months.
In January, store price growth aligned with forecasts, and the process may continue for the next few months. The effects of supply shocks from the previous year are still clearly visible in the market, but these will gradually decrease, helping to facilitate price stabilization and even reductions.
Although price increases are painful for many social groups, they are not provoking as much strong emotions as before. For years, Poles have been living with rising store prices. This is a result of high production costs and growing wages, the price of energy and fuels. However, there are no signs of hope for a reversal of this trend in the foreseeable future.
Nonetheless, it appears that on the list of the most expensive items, sweets and desserts are at the forefront, with an increase of 10.4%. In December, the prices of these goods increased by 8.4% and a month earlier by 10.2%. This category continues to maintain its firm grip on the price spike.
Chocolate is currently experiencing the highest price increase. This is due to extremely poor harvests in Ghana, one of the main cocoa producers. Trouble is not temporary, as due to economic hardship, farmers have started destroying cocoa trees. The reconstruction of fields in other places or countries will take time, but crops will only come in a few years.
Fruit prices occupy the second place in the inflation ranking with an increase of 10.2%. The rise in fruit prices is a result of last year’s drought and other adverse weather effects, with massive declines in the supply of certain types of fruits. Such severe supply disturbances affect price increases, which, in my opinion, will persist in the coming months.
Third place went to fat products, including butter, margarine, oil, etc. In January, their prices increased by an average of 9.7%, in December by 8.8%, and in November by 10.4%. The authors of the report emphasize that the price of butter itself increased by 29.2%.
Non-alcoholic beverages ranked fourth in the listing with an average increase of 7.8%. In December, they rose by 7.7% and a month earlier by 7.1%. The main reasons for the price increase of non-alcoholic beverages are high production costs, arising from expensive raw materials and high energy charges. Also, producers are grappling with workers’ pressure to realistic wages. In addition, there are high expenditures for logistics and warehousing and packaging.
The TOP 5 of inflation ends with bread, the prices of which jumped by 7.7%. The price of milk collection is rising, the cost of milk production is increasing due to the rising costs of fodder, electricity, fuels or labor costs. When it comes to oil and margarine, high prices of vegetable oils in international markets, caused by the supply level, come to the fore.
Just behind the TOP5 was dairy with an average increase of 7.2%. The growth of household chemistry prices by 4.2% ranked last on the January price increase list. At the end of the January list were food additives (mustards, ketchups, mayonnaises, etc.) with a growth of 3.7%. The last position in the ranking was held by vegetables, which became more expensive by an average of 2.8%.
A few months ago, vegetables were one of the fastest-growing product groups, and now they are at the end of the list. This significant change results from several factors. The key role is played by the stabilization of supply and the improvement of vegetable availability on the market. Moreover, after the holiday period, customers could reduce the purchases of more expensive vegetables, which put pressure on retailers and producers not to raise prices. Finally, it’s important to pay attention to the effect of the statistical base.
Source: https://managerplus.pl/ceny-w-sklepach-wciaz-rosna-najmocniej-drozeja-slodycze-i-owoce-48076
