Photo: Philippe Heugen / AFP / Getty Images
The chances of a sign of relief in the bills to be covered by the consumers while visiting the kirana stores are still remote, as According to the estimates of various financial experts, the prices will continue to rise for the rest of the year and possibly next year.
According to government figures, August saw the largest annual increase in the cost of groceries, as they rose 13.5% compared to 2021, which also represents the most significant increase recorded since 1979.
Although food inflation is expected to decrease next year, it does not mean that food prices will go down, because once they reach a certain level, they tend to stay there or go up, but They rarely go down.
Government data shows that from 1974 to 2021, grocery prices fell for only two years.
In contrast, there was an increase every two years, although In some years the increase was very modest and consumers may not have noticed it as the pace kept up with the increase in their wages, which is not the case at present.
In this regard, food producers argue that they are paying higher prices for labor and packaging materials. They also blame extreme weather like drought or floods and diseases like avian flu.
However, consumers have to eat and are therefore willing to pay a higher price for groceries.
For his part, Mondelez (MDLZ) CEO Dirk Van de Put said in a conference call with several media outlets that short-term inflation is expected to remain high.
thus, The maker of Oreo and Ritz said that, given the high costs of energy, transportation, packaging and raw materials, the company will implement price increases to offset these costs.
The same strategy featured General Mills (GIS) CEO Jeff Harmoning, which expects its costs to grow between 14% and 15% by fiscal year 2023, before which The company, which makes everything from Cheerios to Blue Buffalo pet food, will also raise the prices of its products for its retail customers, As it was found that consumers accepted higher price hike than expected this year.
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