Grocery prices show slow decline, still 31% higher than two years ago: consumer group

The prices of basic groceries are slowly decreasing, according to a report by the Dutch Consumers' Association (Consumentenbond) published on Tuesday. Over the past six months, basic products have, on average, become three percent cheaper, yet they remain 31 percent more expensive than they were two years ago.

The Consumers' Association surveyed the lowest prices of 120 basic products at 13 supermarket chains in the Netherlands. Notably, there were significant price drops in fresh dairy products, and other staples like coffee, tea, rice, and potatoes also became cheaper.

However, some products have become more expensive in the past six months. The price of canned chicken soup increased by 13 percent, and various sweets also saw price hikes due to the high cost of sugar.

The organization's analysis showed that consumers can achieve substantial savings by choosing private-label or budget brands over A-brands. Opting for the cheapest variant of a product can lead to a 53 percent reduction in costs. This rate of savings has increased from 40 percent in 2018 to 50 percent in 2021.

Comparing the cheapest (Dirk) and the most expensive (Spar) supermarkets, the price difference has narrowed compared to six months ago. Dirk is now 8 percent cheaper than the average, down from 11 percent in April 2023. Spar is 15 percent more expensive than the average, which is less than the 20 percent difference noted in the previous survey. Furthermore, there is now little difference in pricing between Aldi and Lidl, with both chains being 3 percent cheaper than the average.

The war in Ukraine has contributed to the increase in grocery prices. Producers and supermarkets have raised their prices to cope with the escalating costs of raw materials, wages, and energy. Although energy prices have somewhat decreased this year, grocery bills are more likely to stagnate, as reported by a group of experts last week.