+10%? +15%? +20%? How much will the price increase be on our shelves? While trade negotiations between distributors and suppliers ended on Wednesday night, the new prices should take effect in the next few days or weeks.
How big will the increase be? Although 95% of the contracts have been signed, retail managers estimate that the increase will be around 10%. This is what Michel Biero, the boss of Lidl, thinks especially, but also Dominique Schelcher, the one from System U.
But that does not mean that your purchases will cost you 10% more starting this Thursday.
It is therefore not a “red march”, but inflation that should continue in the food sector at least until June.
Will this increase of 10% really be in the coming months compared to current rates?
Here again, this figure must be put into perspective. Although the negotiations have likely resulted in 10% purchase price increases, they only concern national brand products, that is, the references found in all brands, such as Nutella, Coca-Cola, yogurts Danone or Nestlé Frieskies croquettes.
However, these products represent only a part of the products sold in supermarkets.
“Never Seen Records”
In the end, the Iri company estimates that the global increase in prices of consumer goods should be between 4 and 7% for next June compared to the prices of February 2023.
This constitutes a significant increase after an observed inflation of 14.5% between February 2022 and February 2023. But it should not result in a price explosion greater than the increase in recent months.
It will also depend on the brands and their ability to use their margin to limit the rises. At the moment, we see a great distribution at two speeds with, on the one hand, those who have reduced their margin and those who cannot continue the race.
The price corridor (the average difference between the two most expensive brands and the two least expensive brands in national brand products) which was around 15 points before the war in Ukraine peaked at 30 points in February. Concretely, this means that you will pay 100 euros for the same shopping cart in a brand X and 130 in a brand Y. And this may only be the beginning.
Source: BFM TV
