Increases in food prices will accelerate even more in the first quarter

In addition to energy prices, housing costs, and fuel, it is food that is one of the flywheels in accelerating inflation. This is because the production costs of products, packaging, raw materials, and semi-finished products are rising. In addition, interrupted global supply chains also cause problems with the availability of certain products. According to Andrzej Gantner from the Polish Federation of Food Producers, the peak of the increases is still ahead of us. The solution to the problem will not be the abolition of VAT on basic products or the introduction of regulated prices.

"Food prices are rising quickly, because the costs of its production are rising very quickly, especially energy, some raw materials, and we also have a very large increase in labor costs. We also have taxes that affect the increase in prices, for example, the trade or sugar tax, which increased the prices of beverages very sharply," Andrzej Gantner, general director and vice president of the Polish Federation of Food Producers, said.

As indicated by GUS data, in December 2021 the prices of food and non-alcoholic beverages were 8.6 percent higher than a year earlier. However, this is average and for some products, you have to pay a dozen or even several dozen percent more than in December 2020.

(Newseria)