Reduced by an average of 0.94%, the prices of products in supermarkets appear in December 2024 compared to December 2023, according to the results of a survey by the Consumer Goods Retail Research Institute. The same survey shows full stabilization of prices in 12M 2024, with a marginal increase, on average +0.04% compared to 12M 2023.

In more detail, in the IELKA research exclusively in the channel of the large supermarket chains regarding the inflationary trends in the organized retail trade of food, the course of prices between December 2024 and December 2023 was examined. As it turned out, the deflation in the supermarket chains is of the order of -0.94% in December 2024. The change in December is due, according to IELKA, to decreases in both non-food and food categories, with only very specific categories showing an increase due to seasonal conditions, such as categories related to cocoa and coffee and certain fresh items due to climatic conditions.

Biggest price reductions are recorded in the categories: detergents and cleaning products (-10.52%), food and pet products (-7.8%), stationery, cosmetics and personal hygiene products (-5.42%), baby and children’s food (-4.74%), frozen goods (-3.1%). 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. Biggest increases are recorded in the categories: cookies, chocolates, confectionery (+4.5%), fresh fish and seafood (+4.44%), appetizers, spreads and other served items (+4.03%), alcoholic beverages (+ 3.42%), waters, soft drinks, juices (+2.59%). According to IELKA, the international prices of cocoa and coffee definitely affect the categories of desserts and drinks, but also the category of breakfast items, which includes many items with chocolate. In relation to the increases in fish, due 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. In relation to alcoholic beverages, the reduced production of grapes in 2023 leads to an increase in 2024, as ripening products enter the market. It is noted that of the 23 categories examined in the context of the research, 14 recorded a decrease and 9 an increase.

There is also full stabilization of prices in 12 months 2024, on average as much as +0.04% compared to 12 months 2023. Also from 12 months, in 7 months prices were on average decreased and in 5 months they were increased. Overall, a decline in prices is recorded in almost all the categories examined in the survey. specifically, 12 of the 23 categories showed an average increase in 2024 and 11 a decrease. The biggest decreases were recorded in detergents and cleaning products, stationery, cosmetics and personal hygiene products, eggs and butter, cheese products and baby food. On the contrary, increases were recorded in fresh fish and seafood, in cookies and chocolates, in waters, soft drinks and juices, and in alcoholic beverages.

The reasons attributed, according to IELKA, to the tendency to hold down product prices in supermarkets are:

  • Gradual deflation of inflation. Prices have been restrained in recent months by large grocery stores due to the large volumes of products they carry, economies of scale, their organizational/technological readiness and their private label product range.
  • 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 at large outlets due to higher inventory turnover. In other words, they move their stock faster and make new purchases to replenish stocks more quickly.
  • Impact of private label products. Sales shares of private label products are larger in large supermarket chains due to a wider range of codes, and have been increasing over the past two years.