Categories: Economy

Groceries don’t get more expensive, “but the flag still can’t be removed” Related articles

Groceries are no longer expensive. This is evident from the data of the market researcher GfK, reports NU.nl. In the last two years, top-selling products such as coffee, rice and milk have become 30 percent more expensive, but in the first months of 2023 they have even become cheaper. But that’s no reason to celebrate just yet, says food economist Thijs Greijer of ING.

Groceries are no longer expensive. This is evident from the data of the market researcher GfK, reports NU.nl. In the last two years, top-selling products such as coffee, rice and milk have become 30 percent more expensive, but in the first months of 2023 they have even become cheaper. But that’s no reason to celebrate just yet, says food economist Thijs Greijer of ING. ( ANP / Hollandse Hoogte / Kim van Dam)

For the moment, according to Greijer, there is only one “sign in place” regarding food prices. But that’s not all the products on the shelves. He says there are still products that are increasing in price. ‘So we have to look at the general factor.’

‘We have to look at the broad factor’

Food economist Thijs Greijer

He also believes that the higher wage costs of supermarket staff may play a role in the price increase. ‘On the one hand, the cost of food has increased mainly because raw materials and energy have become more expensive, which is now showing signs of reversal,’ she explains. ‘But you can see wage costs are taking over. There is a decrease, but wage costs have increased by 7.5%.’

External factors

From an international perspective, there are also factors influencing Dutch supermarket prices. Dam collapse in Ukraine could cause major supply disruption, just like drought in Europe. While that doesn’t apply to all products, Greijer says. “For some products it determines the price, such as for cereals,” he continues. ‘But with fruits and vegetables, for example, you often see unfavorable weather in a certain period in a certain area. While in another area it’s favorable again. So it often weighs against each other.’

Flag out

According to Greijer, the flag in the food sector should therefore only be raised if prices fall in all product categories, although he calls the interim drop a boost. “And they won’t go up much more, that’s our expectation for the next six months.”

Author: Remy Gallo
Source: BNR

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