Prices of food staples have risen by 3% on average in hypermarkets in the past five months (December 2008-May 2009), in the context where retail is coping with shrinking demand after several years of booming consumption.
The steepest price increases were registered for vegetables (40-50%), which in hypermarkets are mostly imported, but also for Romanian pressed cheese (28%), according to a food index ZF has drawn up for the first time. The index comprises 18 food staples and prices are taken over from Carrefour network, the biggest hypermarket operator. Data have been collected from the hypermarket starting last May, with the food index being the second index ZF draws up regularly, after the real estate one, launched in 2007.
Data centralised by ZF show a 6% increase in the average prices for food staples in the hypermarket during May 2008-May 2009 period. By comparison, National Statistics Institute data show the average price of food rose by 4.6% in April from April 2008.
Producers account for these price hikes by the RON decline against the euro, which, on the one hand, hurt production costs, because of raw material imports, and on the other hand corporate lending costs.
The market has also seen price drops during the first five months of 2009, particularly operated by vegetable oil, milling and bakery producers, which were supported by a good agricultural year.
"In the second half of 2009, a price hike for vegetable oil is expected, as a result of the draught being projected," stated Vasile Leu, CEO of Argus Constanta.
ZF index shows mineral water prices have gone up by around 10% in the first five months, after in 2008 prices had stayed at a constant level during the entire year.
Cris-Tim, the biggest charcuterie producer on the market, estimates the average basket in hypermarkets and supermarkets fell by 20-30% in t
