The prices of products in supermarkets were reduced by an average of 0.72% in November 2024 compared to November 2023. The above conclusion results from research by the Research Institute of Consumer Goods Retail (IELKA). The same survey finds almost complete stabilization of prices in the eleventh month of 2024 – on average +0.05% – compared to the eleventh month of 2023.

According to the survey, November’s change was due to declines 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 specific fresh items due to climatic conditions.

Biggest price reductions are recorded in the categories: detergents and cleaning products (-9.66%), food and pet products (-6.81%), stationery, cosmetics and personal hygiene products (-6.16%), baby and children’s food (-4.86%), frozen goods (-4.86%).

The reductions recorded are the result, according to IELKA, 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: fresh fish and seafood (+6.38%), appetizers, alipasta and other served items (+5.90%), alcoholic beverages (+5.49%), cookies, chocolates, confectionery (+ 3.45%), waters, soft drinks, juices (+3.43%).

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. The international prices of cocoa and coffee certainly affect the categories of desserts and drinks, but also the category of breakfast items, which includes many items with chocolate. In relation to alcoholic beverages, the reduced production of grapes in 2023 leads to an increase in 2024, as ripening products enter the market.

According to IELKA The reasons attributed to the tendency to hold back product prices in supermarkets:

-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 inventory turnover. Price containment occurs much faster in large outlets due to higher inventory turnover. In other words, they move their stock faster and make new purchases to replenish stocks more quickly.

– Effect 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.