Prices in stores will go up. “They will pass on the entire tax to us”
Prices in stores are constantly rising, and experts are predicting more increases. Find out which products are rising in price the fastest and what we can expect in the coming months.
We have been seeing price increases in stores for some time now. Retail chains use a variety of pricing strategies, especially during the holidays, to attract customers. However, over time, prices are returning to standard levels, which is becoming more and more visible. Experts predict that we will reach the peak of these increases in the coming months.
Prices in stores will go up
According to data compiled by UCE Research and WSB Meritum University, prices on store shelves rose month-on-month after the zero VAT rate on food products ended. Experts note that since April, stores have been competing intensively on prices to attract customers. This has temporarily slowed down price increases that could have been more severe without this competition. However, this period is coming to an end.
The report shows that prices of everyday purchases increased by an average of 2.4% in April (y/y), 2.9% in May and 3.1% in June. Although prices are gradually rising, retailers continue to use promotional policies, which curbs sharp increases. However, experts warn that stores will soon have to pass on the entire cost of VAT to customers to maintain their profit margins.
Artur Fiks from WSB Merito University points out that the holidays may be the moment when retailers decide to fully transfer the tax costs to product prices.
Forecasts for the coming months
Anna Semmerling from the same university predicts that prices may increase by 5% in July and August. This is neither a big nor a small increase, but it shows that prices have not yet reached a stable level. Experts suggest that August may be the month in which the next significant price increase will occur. Further increases may occur in the pre-Christmas period, before December.
The analysis covering 68.4 thousand retail prices of everyday products showed that the fastest price increases were observed in sweets and desserts (an increase of 12.9% y/y in May), household chemicals (an increase of 9.7% y/y), soft drinks (an increase of 6.3% y/y) and bread (an increase of 4.9% y/y).
Prices in stores are gradually rising, and this trend is continuing despite periodic price competition between retail chains. Experts predict that we can expect further increases in the coming months, especially during the summer and pre-holiday seasons. The fastest price increases are for products such as sweets, household chemicals, soft drinks and bread.
