Prices are on the rise for any raw material, be it crude oil, up +65% (comparisons April 2022 vs. 2021), and gas +151%, or wheat +66% and oat at +109%. Already soaring during the pandemic, supply chain disruptions and the war in the Ukraine have sent shipping costs to an all-time high with an increase of +218% 1.
The end to inflation is not in sight, which has a strong impact on household budgets, especially in FMCG – some examples: In Germany, the economic experts of IFO institute forecast an easing of inflation in the second half of the year, as fewer companies are planning to further raise their prices – with one exception: the retail sector, where nine out of ten companies plan an increase in FMCG.
According to the Italian Statistics Institute (ISTAT), the average Italian family will have to spend an additional 480 Euros on food this year.
Based on data from Eurostat, food prices across Europe rose by +8.9% in April, with Eastern European countries being hit much harder than Western Europe: In Lithuania, consumers had to pay +22.1% (YoY) more for food, in Bulgaria +21%. Food prices also rose double-digit in countries including Hungary, Estonia, Romania and Slovakia, and still by +8.5% in the Netherlands, whereas the lowest food inflation rates in the EU were reported by Ireland (+3.6%) and France (+4.3%).