Prices for groceries increased considerably this year
Groceries became considerably more expensive during the first nine months of 2021. The prices for soft drinks, beer, canned goods, personal care products, and cleaning products in particular increased sharply, AD reports based on figures from market researcher GfK. According to GfK, the average price paid for groceries increased by 3.6 percent - significantly higher than the current inflation rate of 2.7 percent.
Prices were pushed by an explosive increase in demand for agricultural products, Koos Gardebroek, agricultural economist at Wageningen University, explained to the newspaper. Supply remained stable, but the demand increased enormously, Gardebroek said. Many countries are seeing their economies pick up again rapidly after the coronavirus crisis. So they are replenishing food stocks, which is also increasing the demand for animal feed. The high fuel prices also increased the demand for biofuels as an attractive alternative.
Gardebroek expects that groceries will become even more expensive in the coming months. "I think that an average household will lose hundreds of euros extra on an annual basis. Supermarkets would, of course, prefer not to, but they cannot escape passing the increased prices on to the consumer. You already see it happening. On top of that is the energy crisis. Not only food and drinks itself became more expensive, but also the transport of it due to higher fuel prices."
The UN food organization FAO reported that food prices on the world market are higher than they've been in a decade. The price of vegetable oil increased some 60 percent in the past year. Sugar is 53.3 percent more expensive, meat 26.3 percent, grains 41 percent, and maize 38 percent.
And that also translates to the finished products. Consumers paid 6.7 percent more per liter of beer in the first three quarters of this year than in the same period last year. Care products became 6.5 percent more expensive, cleaning products 6.1 percent, and soft drinks 5.1 percent.