Prices in stores are rising month by month. In July, they were already 3.9 percent higher on average than a year ago – writes Tuesday's “Rzeczpospolita”. – Rising inflation, the unfreezing of VAT, the school and holiday period will probably not slow down this trend – assesses an expert quoted by the daily.
“Since April, when the 5% VAT rate on food returned, the pace of price growth in stores has been accelerating month by month. In July, they were already on average 3.9% higher than a year ago, according to the latest edition of the price index by UCE Research and WSB Merito Universities, which is reported in Tuesday's “Rzeczpospolita”.
The price index shows that in July, out of 17 monitored categories, 11 showed single-digit year-on-year growth, while in June and May there were 12 of them. In addition, two categories currently recorded double-digit growth, and four were in a downward trend.
Central Statistical Office – inflation in July 2024PAP Infographic
Prices in stores after VAT increase. Beverages with the highest increases
As the journal writes, The biggest price increases were for non-alcoholic beverages, up 15.6 percent. Second place went to food additives such as ketchups and mustards, with prices rising by 11.2 percent. Third place went to sweets, with prices rising by 9.3 percent.
– The impact of the unfreezing of VAT rates on prices in retail stores is, as expected, postponed. In the initial period, chain stores took part of the tax “on themselves” to some extent, however, the full transfer of the costs of the unfreezing of VAT to customers was only a matter of time and this is happening, says Dr. Tomasz Kopyściański from WSB Merito, quoted by “Rzeczpospolita”.
More promotions
– Chains admit that there is an increase in the number of promotions, and if it were not for this, the price jumps would be much more noticeable. If we compare the second quarter of this year with the same period last year, we see a growing number of promotional campaigns and so-called in-out campaigns. When organizing promotions, we focus on the most needed products in the household, says Aleksandra Robaszkiewicz, spokesperson for Lidl Polska, quoted by the daily.
“Rzeczpospolita” adds that according to the research by Hiper-Com Poland, Blix Group and UCE Research, retail chains organised almost 9 percent more promotions than in the same period last year. Growing inflationthe unfreezing of VAT, the school and holiday period will probably not slow down this trend. Consumers will look for discounts and all kinds of rebates, and chains will attract their attention and wallets with appropriate actions – enumerates Sebastian Błaszkiewicz, head of sales at Unity Group, quoted by the daily.
Other causes of high prices
– The unfreezing of gas and electricity prices for households contributed to a jump in inflation, which rose from 2.6% in June to 4.2% in July. Retail chains react very quickly to such phenomena, adjusting prices accordingly, increasing them – enumerates Sebastian Błaszkiewicz, quoted by the daily. He adds that modern technologies make it possible to increase prices practically in real time.
– Rising inflation, the unfreezing of VAT, the school and holiday season will probably not slow down this trend. Consumers will look for reductions and all kinds of discounts, and chains will use appropriate actions to attract their attention and wallets – Błaszkiewicz added for the daily.
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