In the food trade, products from the low price segment in particular have risen above average over the past four years. The price difference between discounters and supermarkets is quickly disappearing. Own brands and private labels of the corporations “often become more expensive” than branded products. Organic products show a small increase in costs.
This is the conclusion of the Consumer Information Association (VKI) after examining the prices of the four market leaders in food retail (Spar, Billa, Hofer and Lidl).
While the difference between discounters and supermarkets was still six percent in 2018, this has halved to three percent this year, the VKI notes.
In August 2022, ‘entry-level products’ were 22 to 27 percent more expensive compared to July 2018. Branded products have risen in price by 22 to 24 percent, slightly less, but also well above headline inflation.
The lowest price increase was for organic products with 15 to 17 percent. That’s pretty much in line with the total consumer price (CPI) increase of about 16 percent over the period.
Price jumps in the low price segment
The sharp price increases of individual items in the low price segment were striking: the price of vegetable oils has at least doubled in four years and in one case increased by 144 percent. But also with mixed bread, toast, flour or pasta there are often price increases of 50 to 70 percent. This also applies to various frozen products or extra sausage.
While branded items have increased in price by a similar amount on average, there have rarely been extreme price increases of more than 50 percent. Own brands and private labels of the corporations “often become more expensive” than branded products.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
