Why food inflation is slow to show in supermarkets

By George Lampiris

Inflation in food is currently at the level of 8% according to the prices monitored by supermarkets on their shelves, despite the fact that ELSTAT recently published that the consumer price index for food and non-alcoholic beverages was at 10.9 % in April. The reason for this difference, as explained by Aristotelis Panteliadis, CEO of the Metro group in the margin of the press conference, is because the price increases are delayed on the supermarket shelves and are expected to be reflected in the final prices of the products. This on the one hand means that other increases are coming. At the same time, but according to him, in order for the increases from the suppliers to reach when they are announced, to the supermarket shelves, there is a period of 2-3 months. That is why double-digit food inflation has not yet been recorded, despite the fact that 10.9% in food was announced as a reference value by ELSTAT for April.

“We no longer have the margin to keep the increases”

Regarding the increases that exist in the essential products, Aristotelis Panteliadis, regarding the attitude of the My market chain, which belongs to the Metro group, characteristically noted: “We take on what we can, but we no longer have the margin to hold the increases and de facto they are transferred to consumption.The suppliers also helped to keep the prices in. At the moment Greece has more inflation than other countries, while when the prices in some categories increase a lot, these increases will pass “In order for this to happen, it takes about 2-3 months from the time the supplier announces price increases.”

Regarding the supermarket market, Mr. Panteliadis said that the decline in sales in volume in April was at the level of 8% compared to the same month last year, while in May compared to the same month last year sales fell. although to a lesser extent compared to April this year, as a result of the reduction in consumption. The decline in sales in volume for May is estimated at levels of 4% to 5%.

“The provision for the profit ceiling in individual foods is wrong – It does not take into account the average profit margin”

Mr. Panteliadis also referred to the ceiling that has been set on the profit margin of specific goods after the recent order of the Ministry of Development and Investment. “The market provision does not take into account the average profit margin, which would be unacceptable to increase in such times of crisis. Instead, the market regulation takes into account each product separately. However, a supermarket with 20,000 codes operates as follows: : monitors the competition, moves with offers and so at all times 40% of the products we have in a store are on offer.When someone locks the profit margins, prevents the market from working.That’s why I think the layout is wrong. “It does not affect our final result but our commercial policy. It does not let us do our job properly. However, it does not affect our profitability,” said the businessman.