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The future will show what the government will do to curb food price increases. Inflation will continue to spread in 2023, including in the food industry, due to high prices of energy and agricultural products.
Recent years have seen a ubiquitous surge in inflation and rising prices. Consumers wrestle with higher housing prices, energy bills and costs of daily necessities such as groceries. The spike in grocery prices is a direct effect of rising cost levels throughout the F&B value chain.
The annual inflation rate was 3.8% last year, compared with 10% in 2022. This was largely due to the 37% drop in energy prices and a change in the way their impact is measured. Excluding the impact of fuel, the rate was 6.5%, the CBS said in an update on its 2023 inflation figures.
Over the past year, groceries have become 7% more expensive. And unfortunately, that’s just one of many price increases that may affect your day. According to the Dutch Statistics Centre (CBS), the price of food, drinks, and tobacco has increased by 7% compared to January 2024.
While inflation dipped slightly compared to May, prices for groceries, energy, and housing continued to be persistent drivers of higher costs. Approximately one-third of the overall price increase was attributed to housing-related expenses, including energy and water bills.
With margins already slim in the Dutch retail sector, structural cost increases—beyond inflation—are exerting significant pressure. Even as headline inflation begins to stabilize, underlying expenses such as energy, logistics, and compliance costs continue to rise, eroding profitability further.
Food retailers are likely to prioritise margin recovery and preservation and maintain current price levels. Rabobank also added that there could be more action on the promotional front in...
According to a survey conducted in the Netherlands, people are becoming less worried about inflation hitting food consumer goods.
Discounters are performing well in both food and non-food retail... Despite higher disposable incomes, many Dutch consumers remain highly price-conscious – driven in part by persistently high inflation.
www.dnb.nl DownloadOur model simulations show that shocks to energy and food prices have a positive effect on price growth that works through a direct and an indirect channel. In particular, higher energy and food prices drive up inflation immediately as they are part of the consumer price index (the direct channel).