Food Prices Are Said To Be Soaring But Have You Seen a Difference?

Food prices are said to be soaring but have you seen a difference?

FOOD prices are going up around the world and for many this could not come at a worse time as jobs for many people have been affected by the ongoing Coronavirus pandemic. Many people have had to turn to food banks in order to survive already and as costs rise, more and more people could be pushed into food poverty.

Expats and Spaniards alike in Spain have seen costs rise recently and it was reported in January that Spain’s core inflation rate had risen by 0.6 per cent in comparison to the previous year, as price rises in food, gas and electricity had a knock-on effect.

Companies all over Europe and the US and Canada have come under increasing pressure as the global pandemic has disrupted supply chains, and transport and packaging costs have increased. According to reports suppliers are running out of ways to absorb cost increases, and these could be passed onto consumers more in the future.

Some price increases may not be immediately apparent to consumers though, as it is predicted that supermarkets will reduce the number of special deals and multi-buy offers available to customers according to Bloomberg.

As the number of Coronavirus cases starts to increase after the recent Easter break, one factor that could dramatically affect food prices is the potential for local border closes in Spain. One concerned expat told EWN and how during the pandemic and local border closures they had been forced to spend out more as their local town did not have a large supermarket.

They said, “The grocery prices seemed to increase at the beginning of the pandemic.

“Because of changing restrictions, we have changed the way we shop as we don’t have access to a supermarket if perimeters are closed, so now we buy more household and store cupboard items when we shop while we still can, in the event of things changing again.”

They went on to explain how the felt value for money had been dropping and said, “However I do think overall we are getting less for our money.”

Another expat said, “To be honest I haven’t noticed any difference at all.  But we are just two people in our 70s so it might be different for a young family and loads of kids.”

In February it was reported that during the pandemic supermarkets in Spain had seen their takings increase by extra €3.1 billion so far during the crisis.