Supermarket prices

[Patientlyw8ing]

Certain products increasing 25% in a week?! Why? How?! When will it slow down? Will they ever decrease?

I just don’t understand. Places that sell food ie cafes aren’t increasing their prices like this from what I understand so why supermarkets? Anyone able to explain this to someone not very economically savvy?

No idea. I used to put £400 away for food every month. £100 a week. For three of us that was fine. I am now spending more out of my other weekly spending money on food.

I’m managing to spend similar so far but with a lot of changes. Never bought branded but now on the value range, no more fish, less meat, cheaper fruit & veg, smaller portions. Can’t do much more so then I guess spending will go up. Paying more for so much less.

I’m astounded at the sharp increase in prices from two/three weeks ago. It’s quite a worry

This will sound rude, really not intended.
do you follow current affairs? Many reasons. Worldwide shortages, because of war in Ukraine/pandemic, increased import costs, increased production costs because of rising utility charges, increased transport costs post-Brexit and because of rising fuel costs and so on.
many cafes are taking a hit because they daren’t increase prices and lose customers, many are on the brink of shut down already .
Unfortunately, it will get worse for some time before it gets better.

The price of fuel/fertiliser is considerably higher now than it was last year. That has an impact, if your animal feed/fertiliser/transport cost are higher then food prices go up. The pound is also very low so importing stuff costs more.

Yes I’ve heard all the reasons for prices increasing. But I guess my question is I don’t see anywhere else increasing prices so quickly and frequently? It’s energy companies and supermarkets but nowhere else on the same scale?

okay so, catering places don’t go to Asda do they? They go to wholesale places? Are those places increasing their food prices so rapidly? I know it doesn’t make a difference to me I’m just trying to get my head round it

Yes wholesale prices are also massively increasing.

costs are increasing at every point in the supply chain. Each point of supply has to balance absorbing the cost increase with remaining a viable business.

So how comes supermarkets can get away with it then? Because we have no other choice I suppose? Or is there a cheaper alternative to the main stream supermarkets?

Because ultimately they are businesses and if they don’t make money they can’t continue. As with all businesses it’s going to be a balancing act for them.

Every single step in the production process is seeing increases costs -
higher wages for farm workers,
increases in diesel, gas and electricity prices,
increases in fertiliser prices,
increases in animal feed prices.
Increases in transport worker wages
increases in diesel prices for transport.
Increase in import/export costs due to Brexit.
Increases in shop worker wages
increase in shop overheads - electricity etc.
And many other factors too. Including the tanking £.

Also, the UK started from a low base - food here was ridiculously cheap coated to other countries - have you ever thought about the actual processes involved in getting a loaf or carton of milk onto your table?

I suspect the answer is simply that small, local cafes are taking more of a hit to profits than supermarkets are prepared to do to try to stay open. The supermarket shop is an essential purchase so if prices go up they will not lose many customers but cafe owners know that many customers are feeling the pinch anyway so if prices go up they will simply not eat out. Cafe owners probably also have quite a lot of personal investment in the business so are more likely to try to ride out bad couple of years, and may also know their customers personally and not want to lose them. Supermarket management will be far more ruthless about pricing and operating decisions (including sacking staff and closing branches if they are not making enough money).

You are right, OP - it’s bonkers. I feel like the supermarket is somehow for other people. It’s like it doesn’t apply to me.

No idea how people are buying all these products. I’ve stopped buying meat basically.

I understand why but it has still been brutal, We go through a lot of dairy cream cheese, butter, milk have all had at least 50% increase. Cheese doesn't seem more expensive though yet still a massive block of mature cheddar for £4 at Aldi/ Tesco (Aldi pricematch). I'm happy to divide and freeze though.

how do you use cheese after freezing it? Can it be defrosted and used as normal? Does it keep for as long?

Places that sell food ie cafes aren’t increasing their prices like this from what I understand so why supermarkets?

They're probably doing their best to delay increases. Wholesale costs are certainly up. I use a major wholesaler to buy oats, rice, pasta for a foodbank. Our costs have increased 50-60% since the Russian invasion of Ukraine.

I'm not sure you are right about cafes etc not increasing prices. I've just had lunch in my favourite cafe and the sandwiches are definitely smaller than they used to be!

Just stick it in the fridge overnight to defrost. Tastes exactly the same, no difference in texture, keeps the same. I’ve only tried it with cheddar : hard cheese though. You can also freeze butter.

Thank you will definitely give this a go as avoid buying the biggest blocks which are cheaper per kg as worried about them going off

To be fair I’ve not eaten out recently at all but from glancing at prices a coffee or sandwich isn’t increasing at 25% at a time it’s not fair that other places are struggling to make profit yet supermarkets can continue to do so I guess

Lovely pigeon has given a good explanation. I would add that
A) lots of food places either ARE increasing their prices, and if they haven't they probably will soon- if they have to reprint their whole menus etc (another cost) it makes sense.for them to do a big price change every few months rather than the supermarket which can change daily.

It might just be that you haven't noticed -presumably you go to the supermarket more than you go out to eat so you wouldn't necessarily notice price increases until you go there?

B) economies of scale - if chicken breasts have gone up 20% a cafe that goes through say 50 chicken breasts a week is in a different position than tesco that sells millions of them a week - the cafe could perhaps weather making a small loss for a week or two, if the supermarket didn't react immediately (by pushing the price raise onto the consumer) then they lose millions within 1 week.

C) individual cafes etc don't have shareholders that expect profits somehow even during the midst of an economic crises!