Price of vegetables falling but food inflation still high – NOS

The price of fresh vegetables is falling but groceries are not becoming noticeably cheaper, according to an NOS-commissioned analysis of supermarket receipts.

The data and insights company Hiiper, which carried out the analysis, said the recent period of supermarket inflation has come to an end. Compared to March, consumers are shelling out less on some fresh produce – including cucumbers,
strawberries, eggplant and melons.

But others, such as tomatoes, broccoli and bananas are still more expensive than a year ago. The researchers say this is only partly due to seasonal effects.

Hiiper says that it doesn’t appear that prices will eventually return to pre-inflation levels.

“In total, you still pay more than 11% more for your groceries than last year,”
director Joep Smeets told NOS.

Green shoots of recovery

Cucumbers are on average 10% cheaper than a year ago and 34% down from the price peak in March. Dairy, cheese and eggs are 3% cheaper than in March.

But these decreases are offset by the price increases of other products, such as frozen foods, which cost 16% more than a year ago.

The same goes for biscuits and chocolate, the price of which has been increasing monthly since the beginning of last year and is attributed to the rising costs of cocoa and sugar. Their prices are expected to rise further.

Last month, Ahold Delhaize, the parent company of the largest Dutch grocer Albert Heijn, promised to lower prices where possible.

Jumbo, the second biggest supermarket chain, has said that despite the slowdown in price increases, its own rising costs (rent, personnel, wage increases)
will keep grocery prices high for now.

For its own house brand, Jumbo says the company will not “pass on the price increases one-on-one to our customers, but will be satisfied with a lower margin on these products.”

Both Albert Heijn and Jumbo are increasingly displaying their house brands more prominently.