Agencies-Gaza post
Food prices in Germany are expected to increase
Grocery prices in German grocery stores are set to continue rising and are expected to increase by another 10% this year, Handelsblatt reported on Sunday, citing the latest analysis from international insurance company Allianz Trade.
In monetary terms, the increase will reportedly be €250 per person per year. Recent price increases are attributed to rising costs for energy, raw materials, and manufactured goods.
“High inflation and the drop in in-store grocery sales post-pandemic are putting pressure on grocery retail profitability.” Aurelien Duthoit, industry consultant at Allianz Trade, told the newspaper. “In this respect, the price increases are likely to have a significant impact on consumer prices in the near future.”
According to the survey published by the Ifo Institute for Economic Research in Munich, 9 out of 10 food retailers plan to further increase prices due to rising costs for electricity, raw materials, and industrial goods.
“The worst is yet to come for households” Duthoit warned, adding that retail food prices do not reflect real price increases over the past 18 months.
The German Farmers’ Association reported last week that the tense situation in the agricultural markets due to the Ukraine crisis is likely to continue for months. The critical supply situation is expected to last well into the coming year and beyond the 2023 harvest, according to Deputy Secretary-General Udo Hemmerling, who expects further price increases for consumers.
According to Björn Börgermann, Managing Director of the Association of the Dairy Industry, retail prices for dairy products are expected to increase by 20% in the coming months.
