War in Ukraine: New inflationary cycle at the gates

New increases are coming in bread and baked goods, but also in a number of basic food items such as meat and dairy, due to the steep increases in the cost of raw materials and energy.

Large supermarket chains are already looking for alternative suppliers in new markets beyond Ukraine, which is at war, in order to ensure adequacy on the shelves while limiting the new precision cycle.

It is indicative that more and more supermarket chains are rushing to set a “ceiling” on the quantities of flour and sunflower oil sold, at a time when the Ministry of Development is activating a platform for monitoring stocks of flour and sunflower oil and is carrying out continuous checks to avoid bad weather.

The war situation in Ukraine has already sparked an inflationary domino since the beginning of the month with food retailers and catering companies no longer able to meet the increases made by suppliers.

“There will be new increases. Each baker will assess for himself what he will ‘absorb’ and what the burden will be for the consumer,” said the president of the Panhellenic Bakers’ Federation, Michalis Mousios, noting that in January and February there was a 20% reduction in sales. compared to 2021 and how the increase in prices will lead to a further decline in consumption of bakery products. Already, in some ovens the price of the loaf has reached one euro.

For bakers the concern is intense. Given that Greece imports almost 70% of soft flour for bakery and confectionery products from Russia and Ukraine, the problem is big as other countries such as Bulgaria and Romania reduce exports for fear of shortages in their own markets resulting in price increase.

A similar stance is followed by Morocco, which stops exports of tomatoes, and Egypt, which restricts exports of flour and cereals (it is recalled that Russia and Belarus have already reduced exports of fertilizers).

All of the above follow the previous cycle of accuracy in the period January – February, during which soft grains increased by 60% compared to December, while price increases of up to 40% were in oils, margarines and sunflower oil.

Indicatively, 5 liters of sunflower oil were sold at 8.20 euros and now they have reached 11.5 euros and the new hikes from suppliers are at 15 euros. Imported flour from Bulgaria has risen in price by 15%, while sugar by 10%, with prices changing daily.

Bargain hunting

Average savings of 370 euros (13.2% of the total purchase value) for the average household resulted from offers and discounts in large supermarket chains in 2021.

This emerges from the data of the research of the Consumer Goods Research Institute (IELKA) 2014-2022, with a sample of 2,000 consumers from all over Greece, according to which Greeks in their effort to save money are increasingly chasing offers and discounts .