Chocolate Industry

Further increases are expected in food prices

Consumers should prepare for further price increases of up to 16% on food and other supermarket purchases in the coming period as new price lists with price increases continue to arrive at retailers .

The fact that food price increases are not contained, quite the contrary, was also demonstrated by the data on the evolution of the consumer price index in August. The data shows a further rise in prices in the food category, with the phenomenon also being recorded across the EU and the US.

A major disruption in the flow of natural gas from Russia would certainly lead to much larger increases or even shortages in the market, as much of the industry uses natural gas to power factories.

According to supermarket industry officials, the new price lists received from suppliers include the following mark-ups: 16% on fresh juices, 15% on fish, 13% on cheese, 6-12% on biscuits, 12% on stationery, up to 12% on chocolate, 9% on pasta, 8% on yoghurts, 6% on charcuterie, 5% on fresh milk, 5% on oil olive, 6% on legumes and 9% on personal hygiene products.

Last month, according to ELSTAT data, the food and non-alcoholic beverage category recorded an annual price increase of 13.2% and 1.3% on a monthly basis. In the euro zone, food prices in August rose by 10.6% compared to the same month last year, against 9.8% in July. At the same time, in the United States, despite the drop in the consumer price index in August, food inflation reached 11.4%.

Vegetables, meat and in general foods of animal origin, such as dairy products and cheese, will be at the forefront of hikes in the coming weeks. As fertilizer prices remain high and the risk of shortages looms, as production requires the use of natural gas, major crops in Greece and Europe are threatened with extinction.

Cereal production in the EU is expected to decrease this year by 6-8% compared to last year, which means a problem for almost the entire food industry (due to flour products), but also for animal feed, for which cereals are essential.

Maize production – also due to the drought that hit Europe this summer – is expected to be reduced by 20%, durum wheat (used to make pasta) by 7.4% and soft wheat by 2.5 %.