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Food price hike: "The worst is yet to come"

2022-06-03T08:33:47.828Z


Food prices could explode again – experts worried: “The worst is yet to come” Created: 06/03/2022Updated: 06/03/2022, 10:20 am By: Jan-Frederik Wendt Food prices at Aldi, Lidl, Rewe, Edeka and Co. have been rising for weeks. According to experts, the trend will not reverse in the near future. Kassel - Because of the Ukraine conflict, there have already been bottlenecks and higher food prices i


Food prices could explode again – experts worried: “The worst is yet to come”

Created: 06/03/2022Updated: 06/03/2022, 10:20 am

By: Jan-Frederik Wendt

Food prices at Aldi, Lidl, Rewe, Edeka and Co. have been rising for weeks.

According to experts, the trend will not reverse in the near future.

Kassel - Because of the Ukraine conflict, there have already been bottlenecks and higher food prices in supermarkets several times.

Only a short time ago, an expert warned of a drastic shortage of wheat.

In the future, customers of Aldi, Lidl, Rewe, Edeka and Co. will have to adjust to further price increases.

"In Germany, food retail prices are likely to rise by more than 10 percent in 2022," said retail expert Aurélien Duthoit from credit insurer Allianz Trade, summarizing the results of a recent study for welt.de.

Converted, this corresponds to an average of 250 euros in additional costs per person per year, as reported by hna.de.

Despite the recent price increases at Aldi, Lidl and Co., food retail prices are far from reflecting the actual rise in food prices over the past 18 months.

"The worst is yet to come for households," Duthoit warned.

At Lidl, Aldi, Edeka, Rewe and Co.: Experts expect further price increases (symbolic photo).

© Philipp Schulze/dpa

Aldi, Lidl, Edeka, Rewe and Co.: According to the study, prices are increasing drastically again

According to the study, food and beverage manufacturers have increased their prices in Germany by an average of 16.6 percent since the beginning of 2021.

The surcharges were strongest for everyday products such as oils and fats (plus 53 percent), flour (plus 28 percent) and pasta (plus 19 percent).

In contrast, food retail prices have risen by a comparatively modest 6 percent, according to the study.

In food retailing, 75 percent of the total costs are accounted for by purchasing.

So there is still some catching up to do here.

"History has shown that retail prices generally adjust to producer prices, albeit with a certain lag," says Duthoit.

Rewe, Edeka, Lidl, Aldi and Co.: Industry under pressure

"High inflation and post-pandemic declines in in-store grocery sales are putting pressure on grocery retail profitability," Duthoit said.

"In this respect, the price increases are likely to have a significant impact on consumer prices in a timely manner."

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According to a current survey by the Ifo Institute, nine out of ten companies in the food and beverage retail sector are planning further price increases.

The main reason for the increasing prices at Rewe, Edeka and Co. are the higher costs for energy, raw materials, merchandise and primary products.

Expert expects price increases at Edeka, Aldi, Lidl, Rewe and Co.

Agriculture has also recently been sending out worrying signals for consumers.

Only a short time ago, the German Farmers' Association warned that the tense situation on the agricultural markets would probably continue for several months.

The reason for this is the Russian war of aggression in Ukraine.

Deputy Secretary General Udo Hemmerlin fears that the critical supply situation will extend beyond the 2023 harvest.

Therefore, the expert expects further price increases at Aldi, Lidl, Edeka, Rewe and Co.

Month

Change in the consumer price index for food

January

4.9 percent

February

5.1 percent

March

5.9 percent

April

8.0 percent

Source: Destatis

For example, dairy products could become significantly more expensive.

"In the case of dairy products with longer contract terms, the price increases in the shops have not really arrived yet, that will only happen in the coming weeks and months," said Björn Börgermann, Managing Director of the Dairy Industry Association, of the Neue Osnabrücker Zeitung.

"Increase rates of 20 percent could well be possible," says Börgermann.

In the end, this decides between dairies and trading companies.

Edeka: Supermarkets must not abuse price increases for their returns

Large retail chains are trying to combat the price increase.

Edeka boss Markus Mosa has been appealing to the big brand manufacturers for weeks not to go too far with price increases.

"However, rising consumer prices must not be used as an alibi for industrial groups to maximize their returns with excessive price requirements," said Mosa.

Edeka will avert avoidable price increases in negotiations with the manufacturers.

Unavoidable price increases should not only be imposed on consumers, but should be distributed along the entire value chain.

Rewe boss Lionel Souque made a similar statement.

(Jan-Frederik Wendt)

Source: merkur

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