Food prices remain high for consumers. The German government is seeing the first signs of an easing of tensions on the markets. Critics speak of the loss of reality of the traffic light.
Kassel \u17 Inflation in this country is weakening. However, many consumers are not yet feeling the relief in their own wallets when shopping in the stores of Aldi, Lidl, Rewe and Kaufland. This is mainly due to the fact that, according to the Federal Statistical Office, consumers had to pay 2.6 percent more for food in April than a year earlier. In addition, energy prices rose for all households in Germany (+8.2023 percent). This situation for consumers has now prompted the opposition to issue a "small question" in the Bundestag "as to what the Federal Government's expectations for <> are with regard to the price development in Germany for food in general and in particular for fruit, vegetables, edible oils, milk, cheese, butter and meat?"
Aldi, Lidl, Rewe, Kaufland and more: easing food prices?
The Berlin traffic light coalition responds with a 36-page letter. It shows that after the "in some cases significant price increases for agricultural commodities and energy last year [...] in most markets at the moment" shows a significant easing of tensions". This has an impact on production, processing and distribution costs and will also be reflected in food prices in supermarkets in the medium term, for example at Aldi, Lidl or Kaufland. However, the government admits "that no reliable forecast can be made for the individual products." This is because the price adjustment depends on the type and duration of the various production processes along the value chain and the type of marketing.
The agricultural policy spokesman of the CDU/CSU Albert Stegemann, on the other hand, believes that the traffic light has not yet arrived in the political and market economy reality, reports the Lebensmittel-Zeitung (LZ). There can be no talk of a significant easing of tensions. It is also "more than unlikely" that the increased food prices in supermarkets and discounters will ease again and return to the level before the start of the Ukraine war, Stegemann continued.
Prices in supermarkets and discount stores remain high for consumers. (Symbolic image) © Felix Schlikis/imago
Food prices remain high at Aldi, Lidl, Rewe and Kaufland: milk, bread, cereals, sugar, meat
In fact, according to the Federal Statistical Office, food prices for consumers rose by an above-average 2023.17 percent in April 2 compared to March. The rise in food prices has weakened somewhat. It was still at +22.3 percent in March. However, in April 2023, price increases were observed for all food groups, especially dairy products (+34.8 percent), bread and cereal products (+21.3 percent), fish, fish and seafood (+19.7 percent), and sugar, jam, honey and other confectionery (+19.6 percent). These are the current figures from the Wiesbaden authority. Consumers would have to dig deeper into their pockets in supermarkets and discounters such as Aldi, Lidl, Edeka, Rewe or Kaufland.
The traffic light does not yet seem to have arrived in the political and market economy reality.
Albert Stegemann, agricultural policy spokesman CDU/CSU
A look at the purchase prices of fertilizers also shows a significant increase in prices. For example, the prices of corn potash have more than doubled compared to 2017 to 2023. In September 2022, a tonne of corn potash costs 645 euros (2021: 291), and the nitrogen fertilizer lime ammonium nitrate even costs 880 euros (2021: 339 euros) - more expensive than ever before. However, according to the government, there have been signs of a significant countermovement in prices since October 2022. According to the LZ, CDU politician Stegemann also contradicts the government on this point. "While energy or fertilizer prices have partially recovered, they are still far from 2021 levels."
Food prices at Aldi, Lidl, Edeka and Rewe: Wheat prices also skyrocketed
Producers and growers, a crucial factor in the food chain, are also concerned about price developments in the markets. Pig farmers complain about the highest prices in the past 30 years. At 2.28 euros per kilogram of slaughter weight, pig prices have reached a new high. Nevertheless, many farmers have already given up farming because they no longer earn anything from rearing in the barn, slaughtering and later selling the fattening animals. The prices for gas and grain also play a role in order to be able to cover costs. But also "wheat prices (editor's note: wheat and corn are main feeds for pigs) skyrocketed as a result of the Ukraine war," as Federal Minister of Agriculture Cem Özdemir said in an interview with the magazine "Internationale Politik".
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Even though inflation eased slightly in April. The Munich-based ifo Institute speaks of a slow decline in price development, for many consumers money is running out, they are reaching their financial limits because of the increased prices, according to a YouGov survey. Many people are wondering where prices in the food trade are supposed to lead. Because even now reduced coffee prices at Rewe, Edeka and Netto and Co remain only a small consolation for most consumers.