This Easter, food is cheaper than last year

For the first time in 3 years, on Easter food is cheaper than last year. The basket of the 10 most important Christmas products has decreased by 20% over the last year. However, on Monday, prices will increase again due to the increase in the VAT rate on food.

Food stopped becoming more expensive

After three years of continuous increases, we have the first Easter ahead of us, during which food will not be more expensive than the year before. Over the last year, the basket of the 10 most important Christmas food products purchased by Polish families has decreased by 20%. Importantly, the prices of all products in the basket have dropped, which means that Easter food should be cheaper for most families. During the holidays, when we buy more food than usual, lower prices should bring relief to tighter household budgets.

However, the last few years of inflation and rising food prices have left their indelible mark on the prices of many products. The current price drops do not mean a return to the food price levels of 2020 or even 2021. The price level this year is similar to that recorded during Easter in 2022.

READ: Eggflation – what it depends on and how the price of eggs changes

Prices of individual products have fallen by almost 30% in the last year. in the case of yellow cheese, up to 9%. in the case of the price of pork ham. Sugar prices in Polish stores are currently 26 percent. lower than a year ago, which is the result of a 20% drop in the price of sugar. on global markets over the last 6 months. Finally, we also managed to overcome "eggflation", because egg prices dropped by 23% within a year. The effect of the drop in grain prices and the import of cheaper products from Ukraine is also visible on store shelves - the price of flour dropped by 18% and the price of pork loin - by 13%. (this is due to the lower price of feed).

The basket of basic products decreased by 20 percent, while – according to GUS – food and beverage price inflation amounted to 2,7% in February. y/y, and overall consumer inflation dropped to a record low of 2,8%. Food prices fell by 0,4% in February. m/m.

What is the reason for the current situation?

The price level of food products is influenced by many factors, apart from world prices. The European Union's agricultural policy and supply and demand on the domestic market also play an important role. The pricing policy of intermediaries and retail chains also affects the prices of food products. This year, the drop in food prices is due to the price battle between two large retail chains in Poland - Biedronka and Lidl. Both are fighting for the title of the cheapest supermarket, lowering the prices of selected products. However, discounts usually apply to the most popular products (including those on our list), while the prices of other products remain unchanged or even increase.

It is worth remembering that after Easter, food prices will become more expensive again. This is because this year's Easter, which we celebrate on March 31 and April 1, will coincide with an increase in the VAT rate on some food products from 0 to 5 percent. The government is withdrawing from the VAT reduction introduced in 2022 to fight inflation. This means that when we visit stores on Monday or the next day, the prices of many products will be 5 percent lower. higher.

The ten most important food products ranked by price declines over the last 12 months

Source: Dlahandlu.pl, eToro calculations

About the author

Pawel Majtkowski - analyst eToro on the Polish market, which shares its weekly commentary on the latest stock market information. Paweł is a recognized expert on financial markets with extensive experience as an analyst in financial institutions. He is also one of the most cited experts in the field of economy and financial markets in Poland. He graduated from law studies at the University of Warsaw. He is also the author of many publications in the field of investing, personal finance and economy.