Recent steep price increases in wheat, animal feed and fuel oils have created an explosive inflation mix, giving rise to concern on the extent of its future impact on the typical household’s weekly shopping list. Already, the typical list costs 8.5 percent more than a little over a month ago. Indeed, the basic foodstuffs included on it have risen by an average of 14.5 percent. And 70 percent of consumer spending goes on foodstuffs.
Milk prices went up yesterday. Vivartia, which has the dominant market share, put up its Delta brand by 4 percent; it now costs 1.34 euros per liter. Olympos, its staunch competitor, notified supermarkets, according to sources, that it will raise its prices by 8.5 percent, to –1.59 per liter, on October 16. Mevgal has also said it will charge more as of October 22.
Producer prices have risen substantially. From 34.14 cents a liter in July 2006, the price of fresh milk stood at 37.14 cents a year later and about 41 cents at the end of September.
The price of flour went up 15.8 percent on Saturday, and of spaghetti 25.8 percent. Eggs are up about 30 percent. It may sound paradoxical, but both supermarkets and food industries, traditionally at odds, fear that such steep raises will ultimately dent demand, as consumers curtail spending and increasingly turn to private labels and discount chains. Both sides fear the loss of market shares and the recent steep increases may soon be followed by a spate of offers.
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http://www.energia.gr/indexengr.php?newsid=15970&lang=en
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