High inflation forces households to spend more on food, despite consuming less

Despite food consumption in the Basque Country being lower than in 2019, expenditure on food has increased due to inflation, as observed EITB data with data collected January-November each year from the Ministry of Agriculture, Fisheries and Food.

For example, food consumption in the Basque Autonomous Community has decreased by 18 kilos per capita between 2019 and 2022. However, spending increased by 204 euros in the same period. The same pattern is repeated in the Spanish state, as 37 kilos less food is consumed, but 163 euros more is allocated to buy it. It seems that the higher average income in the Basque Country would have supported the purchase of food more.

The reason for the increase in expenditure is obvious: inflation, which is still much higher than the 1-2% (annual) of the past decade. For example, the increase in the CPI up to 2019 was approximately 1%; from 2019 to 2021 (post-pandemic), prices rose more strongly, about 3%; and with the war in Ukraine and the resulting energy crisis, the scenario has become inflationary between 2021 and 2022, with an increase of 11%. In addition, the Bank of Spain estimates that the price of food will increase by 12% in 2023. This scenario has direct consequences for producers, distributors and consumers.

He monthly consumption it has also fallen, both in Euskadi and in Spain. In the BAC, consumption per capita is 3 kilos less, and in Spain 4. However, the costs are higher than in 2019 in both territorial areas: in the Basque Country the monthly costs are 19 euros more, and in the state it is 15 euros further.

Purchasing strategy change

The result is therefore less consumption, but also a change in purchasing strategy with substitution of products, change of purchase points in search of offers and less purchase of perishable products in order to waste less food.

trends

In terms of consumption trends in the major food groups, the fresh fruits and vegetables With a price increase of 19%, they suffer the most from their consumption, with 11 kilos less per capita and per year. Other perishable products such as milk and its derivatives, meat and fish They too have had to contend with declining consumption in recent years. Finally, bread and potatoes with a lower price increase than the previous one, they have had a smaller decrease in their consumption.

On the contrary, the consumption of Eggs, despite a higher price increase (27%) than fruit and vegetables. It is a fundamental product with a long shelf life and a substitute for meat and fish, making it above the inflation scenario.

On the other hand, despite the extraordinary rise in prices (46%), the consumption of oil It remains the indispensable product that it is. In the same way, pasta and rice, legumes and processed fruits and vegetables they continue to have practically the same space in the consumer’s shopping basket. In the case of processed (canned) fruit and vegetables, they play with the advantage of being substitutes for fresh products.

Finally, from 2019 to 2022 the consumption of ready meals and alcoholic beverages; in the latter case, 5 liters more are bought per capita per year, despite the fact that their prices have increased by an average of 35%. But also the consumption of less healthy products, such as pastries, biscuits, cereals and chocolate and non-alcoholic drinkshas decreased slightly.