ZF calculations show that, overall, the prices of the 15 products analyzed fell by 6.2% in June against May, the second decline after that recorded in May. However, prices went up over 10% against the year-ago period.
“There can be two explanations for the price declines. Firstly there is a trend of stabilization, and even a decline for the prices of grain-based products,” says Sorin Minea, president of Romalimenta and majority shareholder of charcuterie producer Angst, who also holds the supermarket chain by the same name. “The price of grain had significantly risen lately, that is why stabilization was to be expected. If the declines are significant, they can, however, be explained through discounts made either by the retailer or by the producer,” adds Minea. He explains, however, that the discounts made by retailers only cover a few weeks, after which the price returns to normal.
According to Minea, the prices of products such as milk, vegetable oil and flour, which are influenced by grain prices, will not grow further unless there is “an international event that can have a major impact on Romanian prices.”
In June the price of vegetable oil fell by around 2.8% against the previous month, the flour price fell 6.2%, while the price of milk fell nearly 7 per cent.
Out of a total of 15 products analyzed by ZF, 11 saw price declines between May and June 2011. The only products whose prices went up were 1-kilo Lemarco sugar (1.45%), apples (14.07%), 1.5-liter Borsec mineral water (4.57%) and Timisoreana canned beer (0.98%).
In the case of the other products, the decline ranged between 1% for Transavia’s chicken breast and 36.8% for new potatoes. However, some of the products analyzed by ZF whose price fell – eggs, bananas and potatoes – are still sold at promotional prices in one or even in both where that the prices were collected from (Carrefour, Real). The bananas and the potatoes had also been sold at promotional prices the month before. However, the number of promotional offers is much lower now as opposed to the beginning of the year, when ten out of 15 products had promotional prices.
ZF specifies that the Food Index it has calculated on a monthly basis since December 2008, is put together based on shelf prices in Bucharest’s Real and Carrefour stores, with the end price calculated as an average of the two store chains. The index does not provide separate information on the two chains or analyze promotional offers separately.
Prices fell in June against May 2011, but rose over 10% against the year-ago period. The biggest price increases occurred for Baneasa flour, (almost 54%), Baneasa pasta (45%) and Lemarco sugar (49%).