Food and beverages 13.5% more expensive than a year ago

Prices of cereals, dairy products, and poultry are at record levels. It is a result of the unstable situation in international markets and the war in Ukraine. The conflict, which has lasted for three months, has led to a strong increase in the prices of agricultural raw materials on the world's main exchanges, and experts warn that the further blockade of Ukrainian ports on the Black Sea threatens the global food crisis. However, there is no end in sight to the price rises that Poles are experiencing in their wallets. In May, according to the latest data from the Central Statistical Office (GUS), inflation reached 13.9 percent. 

"We have to remember about this magic pain limit, that is, the level of prices that the consumer is able to pay. At the moment, we can already see that, for example, buckwheat groats on a store shelf cost about PLN 12. I think that we are slowly approaching the pain threshold,” Kamil Rabenda, CEO of Soligrano, a company producing food from cereals, said.

In Poland, the sharp rise in food prices has been hitting consumers in the pocket for months now. According to GUS data, in May food and non-alcoholic beverages increased in price by 13.5 percent in comparison to last year and by 1.3 percent in comparison to April this year. Detailed data, broken down by categories, will be released by the office in mid-June, but the April data show that the dynamic growths are characteristic for flour (25.5 percent y/y), meat (17 percent), both poultry (46.7 percent y/y), beef (29.9 percent), pork (15.6 percent), and oils and fats (28.8 percent y/y).

Analysts point out that food production and distribution are getting more expensive at every stage. According to GUS, in April this year purchase prices of basic agricultural products increased by 45.1 percent y/y and 8.7 percent compared to the previous month. The highest dynamics are noted for grain prices. 

(Newseria)