Food additives and household chemicals were the biggest drivers of store inflation in December 2023. This is according to the 'Retail Store Price Index' report by UCE Research and WSB Merito University. As reported, nearly half of the everyday product categories analyzed increased by double digits year over year. On the other hand, the group of products whose prices decreased compared to the previous year increased significantly.
According to the Retail Price Index, In December, prices rose by 5.6%. every year. For comparison, the increase in November was 6.7%. The report's authors analyzed nearly 56,000 retail prices from nearly 30,000 stores of 57 retail chains.
Last month, out of 17 categories monitored, seven saw double-digit price increases year-on-year, while in November there were six such product groups.
Inflation in stores
Food additives remain at the top of prices for another month in a row, namely ketchup, mayonnaise, mustard and spices, with an average increase of 15.3%. every year. “The prices of raw materials from which food additives are produced have been rising systematically since 2022. In the case of tomatoes, the situation has been significantly aggravated by weather conditions and problems associated with the availability of this vegetable in the first half of the year, but also by the high energy costs required for greenhouse cultivation. ” – said Dr. Robert Orbich of WSB Merito University, quoted in the statement.
In December, household chemicals ranked second on the shameful list, with prices rising by 14.1%. every year. It was previously in third place. “Price increases, especially in powders and fabric softeners, are affected by continued rise in production costs. This situation has been going on for several months, and it is difficult to expect a change due to uncertainty about future prices of energy and raw materials,” noted Dr. Tomas Kopecianski from WSB Merito University.
Children's products were at the lowest level – 12.7%. every year. A month ago, they were ranked fourth in the standings. “In addition to price-determining factors affecting the entire economy, the high dynamics of price growth can be determined by the fact that spending on children's products is treated as a priority in most families. Therefore, it is not limited, even despite the large prices,” Orpych explained.
The top five positions were completed by personal care products (12.1%) and sweets and desserts (11.8%). The prices of soft drinks (11.4%) and bread (10.7%) rose by double digits on an annual basis.
There were also declines in prices. It relates to five product groups, while in November it was only one category.
On an annual basis, the prices of fatty products decreased by 25.9%, and fruits by 4.8%. Bulk products also became cheaper by 3.6%. every year. In addition, dairy prices decreased by 3.2%, as did animal food prices by 1.7%.
“In 2022-2023, fats have been at the top of the increase lists for a long time. A decline of more than 20 percent has been observed for several months. This shows that the situation in this category is stabilizing. The remaining product groups that are now in red should be monitored for changing trends.” ” – Robert Orbitsch summarized.
The Central Bureau of Statistics reported on Monday Inflation in December 2023 reached 6.2%. every year. This is 0.1 percentage point higher than the bureau's previous estimate. Compared to November, the increase in prices of goods and services amounted to 0.1%. Data from the Central Bureau of Statistics indicate that the prices of food and non-alcoholic beverages rose by 6% last month. every year.
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