"Price shock" in the supermarket is imminent: experts make gloomy food forecasts
Created: 02/12/2022, 18:41
By: Jonas Raab
Shopping in the supermarket will become more expensive in the future.
An expert explains when inflation will strike.
© Martin Wagner/imago
Inflation drives prices up.
In the future you will also feel this when you do your weekly shopping in the supermarket.
The ifo Institute explains what consumers need to be prepared for.
Munich - Inflation does not stop at the supermarket shelf.
Producers are sounding the alarm, the Institute for Economic Research (ifo) explains what customers of Edeka, Rewe, Kaufland and other retailers will soon see at the checkout.
Everyone agrees on one thing: groceries will soon be significantly more expensive in Germany.
Timo Wollmershäuser, Head of Economic Affairs at the Munich Ifo Institute, explained the effects of inflation and increased fuel costs on the food market in
Welt am Sonntag
: "According to our surveys, more than two thirds of food manufacturers are planning further price increases in the coming months."
Food is a “major inflation driver” – price increases can be quantified
Two-thirds?
Wollmershäuser said there were more than ever before in reunified Germany.
"Thus, food prices are likely to become a key inflation driver this year."
The economic researchers have therefore upgraded their forecast for the inflation rate in Germany in 2022 to four percent.
According to the report, the institute even expects food prices to increase by seven percent compared to the previous year.
That's why food will be more expensive in the future - ifo Institute names the exact point in time
The background to this is, among other things, sharply rising costs for producers.
As the newspaper reported, citing calculations by the German Farmers' Association (DBV), the jumps in the prices of fertilizers and fuel alone are causing production costs in arable farming to rise by 20 to 30 percent.
Not every farm can or wants to go along with this.
Ultimately, consumers feel the effects of the increase in food production costs.
"The price increase in the supermarkets is only just beginning," said the partner at the consulting company EY and agribusiness officer Christian Janze in the
world on Sunday
.
"Producer prices are rising sharply, which ultimately has an impact on consumer prices, especially after the next harvest." A "price shock" is imminent.
(AFP/yo)
