The price ceiling against the increase in food prices in Europe is on the agenda

The idea of ​​retailers crossing the line on price increases has been exacerbated by falling costs of produce. Concerns about price increases have prompted authorities across Europe to take action.

The United Nations Food Price Index fell 19.7 percent in April compared with the same month last year. However, after retailers continued their price increases despite the fall in agricultural commodities, countries including Greece, Hungary, France and Spain increased their measures, according to the compilation of the Financial Times.

According to Eurostat, food prices in the EU increased by 20 percent annually in April. This figure was well above the annual headline inflation rate of 8.1 percent. During the period, egg prices rose 22.7 percent, whole milk 25 percent and sugar 54.9 percent.

This has led to more and more market interventions by politicians trying to quell public anger.

EASTERN EUROPE TAKES ACTION

Hungary and Croatia, which were hit the hardest by the rising prices, took steps to cap prices for basic necessities to protect vulnerable groups who spend most of their income on food. Due to the measures, it was seen that supermarkets in Hungary started to limit purchases.

Greece has taken an alternative approach, capping retailers’ profit margins on food and other essential items. France, for its part, began negotiations with supermarkets to offer various products at the lowest possible price.

DISCUSSED IN MANY COUNTRIES

Spain became one of the few countries to lower the value added tax on food. Italy, another southern European country, has also started discussions to limit the price of widely consumed foods such as pasta.

Belgian consumer protection organization Test Achats called for a measure similar to France’s anti-inflation basket proposal, while Austrian trade union AK called for price regulation on food.

“While some price increases are justified, there are growing suspicions that many companies are making opportunistic excuses to inflate prices,” said Monique Goyens, executive director of the European Consumer Organization, which represents 46 consumer organizations across Europe. .

Goyens urged governments to “take strong action to protect consumers against rising prices.”

WORLD BANK CALL

A World Bank report on food prices on Thursday also appealed to European governments. The organization urged governments to support those suffering from the cost of living crisis.

On the other hand, the World Bank stated that price controls and subsidies distort price signals for consumers and producers, saying that these measures are insufficient.

RETAILERS ARE REACTIVE

However, the retailers said they were not at fault and were not charging exorbitant prices. Kodály Delikatessen, a supermarket operator in Pécs, southern Hungary, noted that the wholesale price of some products is higher than the maximum retail price.

Delikatessen described these products as “products of the dictatorship” and said: “Regulation forces us to sell at a loss.”