“Trade War at the Retail Store Level”. When will food start to get cheaper?

Poles’ consumer sentiment has fallen again. Constantly high inflation affects the desire to shop. Customers limit themselves to the essentials and put off other purchases for later.

– Poles are conscious consumers. High inflation was noticed by them while shopping. They didn’t need confirmation from politicians - says Dr. Edita Wojtyla from the WSB Merito University in Poznań on TVN24 BiS.

– We know how much we spend, how much we spent before and how much is left in the wallet. We buy the same products in stores. If we see that something used to cost 20 percent less, we notice this very well. We don’t need political confirmation said the expert.

“Prices in Poland are growing not only from year to year, but also from month to month. In April, compared to March, the price basket of goods and services grew by 0.7 percent, so there can be no talk of any slowdown here - she added.

What about food prices?

High inflation is felt primarily in the prices of products that each of us buys. According to the Central Statistical Office, inflation in April was 14.7 percent, but food prices rose again by 22.1 percent. It was the highest result among all categories taken into account by the office.

– The rise in prices will stop when the costs of business start to fall – Andrzej Gantner, CEO of the Polish Federation of Food Producers, said on TVN24 BiS.

- We are talking about the cost of energy, raw materials, wages, which are not falling, but growing. When companies feel relieved, all production costs will stop rising. This is the time when they decide not to raise prices, and even with falling demand, they may decide to lower them - the expert explained.

Trade war at the store level

He thinks it’s happening right now “trade war at the retail store level”. Chains began to fight for customers who save a lot. From month to month there is a clear decline in demand, which forces stores to carry out further promotions.

Despite the slowdown in inflation and global trends, according to the expert, food prices will not start to fall rapidly. - Taking into account the position of food producers, it seems that the second half of the year will be a time when prices will not rise significantly from month to month. They may even shrink. He said.

The expert also explained where the ever-increasing food prices in Polish stores come from. - We are talking about the cost of energy, raw materials, wages, which are not falling, but growing. When companies feel relieved, all production costs will stop rising. This is the time when they decide not to raise prices, and even with falling demand, they may decide to lower them - He said.