Increases in food, and decreases in stationery and detergents, the IELKA survey for the month of October shows.

From the research the following emerged conclusions:

  1. Inflation in supermarket chains is -0.03% in October 2024.

October’s change is due to the offsetting effect of increases and decreases in individual categories (see below). Decreases concern mainly non-food items, while increases include items related to cocoa and coffee and certain fresh items due to the prolonged drought.

  1. Biggest price reductions are recorded in the categories:
  • Food and supplies for pets: -10.18%
  • Detergents and cleaning supplies: –8.00%
  • Stationery, cosmetics and personal hygiene items: -4.69%
  • Baby and children’s food: -3.78%
  • Fresh and frozen doughs: -2.77%

The reductions recorded are the result of both the normalization of the market after the pandemic and the reduction in producer prices for certain products.

  1. Larger increases are recorded in the following categories:
  • Fresh fish and seafood: +11.31%
  • Appetizers, spreads and other served items: +5.79%
  • Biscuits, chocolates, sweets: +4.78%
  • Breakfast items and drinks: +3.72%
  • Alcoholic beverages: +3.49%

In relation to the increases in fishdue to the prolonged heat, there were not enough fish to catch, resulting in market shortages and an increase in their price, while fish farms are barely sufficient to meet demand. Its international prices cocoa and coffeecertainly affect the categories of sweets and drinks, but also the category of breakfast items, which also includes many items with chocolate. In relation to alcoholic beverages reduced 2023 grape production leads to an increase in 2024 as ripening products enter the market.

Of the 23 categories examined, 11 recorded a decrease and 12 an increase.

  1. The reasons attributed to the tendency to hold down product prices in supermarkets:
  • Gradual deflation of inflation. Prices have been restrained in recent months by large food retailers due to the large volumes of products they carry, economies of scale, their organizational/technological readiness and their range of private label products.
  • The course of the prices of raw materials in the previous months in the international markets and the normalization of the market. International indices of food raw materials (e.g. FAO Food Price Index) record a decrease in the first months of 2024 in most cases. In cases like coffee and cocoa, however, the effect is reversed.
  • Government institutional interventions. Supermarket chains operate in a strict institutional framework (e.g. Prohibition of promotions in case of price increases 6969/2024). At the same time, the implementation of the voluntary initiative for price reductions in specific products began in October.
  • Offers and discounts. Offers and discounts in the organized retail channel are more in number, intensity and percentage discount, which affects the final prices of the products.
  • High stock turnover rate. Price containment occurs much faster in large outlets due to higher inventory turnover. That is, they sell their stock faster and make new purchases to replenish stocks more quickly.
  • Impact of private label products. Sales shares of private label products are greater in large supermarket chains due to a wider range of codes, and have been increasing over the past two years.