Supermarket prices will continue to rise for now, but could level off in about six months. So thinks Rabobank researcher Sebastiaan Schreijen, who specializes in, among other things, food retailing and consumer behavior. But whether the price will also fall, he doesn’t dare to say yet. Today, the Central Bureau of Statistics reported that food prices rose again in December.
Customers now pay an average of 14% more at the supermarket than at the end of 2021. But this increase appears to be slowly stabilizing. ‘Several commodities are falling in price and the price of gas has also fallen dramatically in recent times. That’s why I think supermarket prices will stabilize in about six months,” says Schreijen.
Coffee
According to Schreijen, which products will not become more expensive depends on the price of raw materials. “As a result, coffee was in the top 10 fastest price increases in the first half of 2022, for example. In recent months, coffee has decreased slightly, but preserved products have emerged. We also see that the producer has to settle the high costs of raw materials with the customer».
In contrast, for example, with costs for packaging material, for which long-term contracts are often concluded. “Only when these contracts have expired and the producer has to pay more for its packaging material will the consumer also notice that a product is becoming more expensive,” says Schreijen.
Negotiations
Negotiations between supermarkets and producers are therefore decisive in this. But these now aren’t just about price, says Schreijen. ‘Supermarkets are considering whether they really want to have products on their shelves. For example, they choose to have certain items delivered only once a week rather than multiple times, to save costs.’
Rabobank previously reported that producers will have to raise selling prices by 10 to 20% to cover all costs. While supermarkets will try to keep those costs as low as possible, the customer will notice something.
House brand
According to Schreijen, consumers have already adjusted their buying behavior. “Take sugar sprinkles, for example. A brand A suit might be 20 percent higher in price, but private label is 30 percent cheaper than brand A. So the customer is more likely to choose house brand. The customer also manages the impact on the wallet by choosing a cheaper supermarket such as Aldi and Lidl.’
Source: BNR
Andrew Dwight is an author and economy journalist who writes for 24 News Globe. He has a deep understanding of financial markets and a passion for analyzing economic trends and news. With a talent for breaking down complex economic concepts into easily understandable terms, Andrew has become a respected voice in the field of economics journalism.
