Most consumers will have noticed that food prices have increased significantly in recent months. But why is that?
Munich – High inflation, the Russian war in Ukraine, supply bottlenecks or greed on the part of manufacturers: there are many possible reasons for high food prices. The consumer advice centre has now also got to the bottom of this issue.
Consumer advice center investigates: Why is food so expensive?
According to the consumer advice centre, food prices rose by almost 2022.2023 percent between April 17 and April 2. One reason for this is high inflation. The Federal Statistical Office (Destatis) reported that it was 2023.7% in April 2. "Food remains the strongest price driver among the goods and services in the basket of goods and services in April," Destatis wrote.
Consumer advice center reveals: Is food only so expensive because of high inflation? © Sven Simon/Imago (symbolic image)
The 17.2 percent increase in food prices compared to the previous year affects all food groups. After a very expensive March, however, prices fell slightly again in April. In particular, vegetables such as cucumbers, tomatoes and peppers, which had reached record prices in the meantime, became cheaper again. Compared to the previous year, on the other hand, oil, dairy products, eggs, flour, cereal products and bread became more expensive. Fish and sauces as well as condiments were among the foods that rose the most in terms of price.
Inflation already started in 2021 – these foods became particularly expensive
What is striking about a large number of foods that have become more expensive is that inflation has been well above the general inflation rate since April 2022. As the consumer advice center announced, the high food prices are not necessarily only due to high inflation. Rather, "food prices are even the drivers of inflation." So, are consumers being ripped off so that manufacturers can expand their profits? Among other things, the Ifo came to this conclusion: "Companies have taken advantage of the situation to increase their profits strongly," said Ifo researcher Joachim Ragnitz.
This is what percentage of food prices became from June 2021 to April 2023:
| Product | Percentage inflation |
|---|---|
| Quark | 77 percent |
| Sunflower oil/rapeseed oil | 73 percent |
| Wheat flour | 70 percent |
| Margarine | 59 percent |
| Toast | 48 percent |
| Noodles | 48 percent |
| Semolina and rye flour | 42 percent |
| Ground beef | 40 percent |
| Fresh milk | 38 to 42 percent |
| Minced pork | 35 percent |
| Fresh poultry meat | 33 percent |
| Olive oil | 31 percent |
| Wholemeal bread | 29 percent |
| Fresh fish | 28 percent |
| White bread | 27 percent |
| Fresh bread rolls | 25 percent |
According to the consumer advice centre, the situation in the agricultural and food industry is also to blame for the increase in food prices. "The cost of energy, fertilizers and feed remains high, labor shortages and minimum wages make personnel costs more expensive." Nevertheless, it seems clear: "Some food price increases are neither justified nor comprehensible." Nevertheless, the consumer advice center draws a rather gloomy forecast: "In all likelihood, food prices will decline only slightly."
