How does Inflation Affect the Prices in Stores?

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Between March and April, increases in average prices were recorded in most sales networks. The prices were most increased in Biedronka – according to the shopping basket survey by ASM SalesForce Agency.

Poland has been struggling with the highest inflation in nearly 25 years. According to the data of the Central Statistical Office (GUS) presented at the end of last week, prices of consumer goods and services increased by 12.4 percent in April. As economists argue, the peak of inflation is still ahead of us.

Meanwhile, ASM SalesForce Agency checked how inflation translates into shopping baskets. The Shopping Cart survey shows that in April this year, the average price of the basket was PLN 241.42, which means an increase by PLN 1.49 (0.62%) compared to March this year. The most significant increase took place in the Biedronka chain (4.16%). Significant increases were also recorded in the E.Leclerc network (13.01%) and in Biedronka (11.34%).

When analyzing the basket consisting only of the cheapest products, we could pay PLN 182.98 (less by PLN 4.15 than in March), while the basket of the most expensive products – PLN 333.53 (PLN 2.89 less than in March). The difference between the cheapest and the most expensive basket was PLN 150.55 in April and it is PLN 1.26 higher than in March.

The latest analysis in the Shopping Cart Survey and Report is clearly confirmed by GUS data – it is getting more and more expensive every month. Inflation in Poland broke another barrier, in April this indicator was as high as 12.4%. According to our forecasts, food prices in the coming months will largely determine the level of inflation, which will continue to rise. Retail chains try to compete with prices, fight for their maximum reduction, and conduct a very active policy in negotiations with manufacturers.

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