Inflation invites itself to a barbecue, price increases in Poland

We are in full barbecue season. Every day, hundreds of thousands of Poles gather to grill their favorite meat, fish or vegetables. Among the invited family and friends, however, there was one uninvited guest - inflation. Since the beginning of the year, pork prices have already increased by 9,5 percent, and poultry - by 2 percent. Vegetarians are in the worst situation, because vegetables have become even more expensive than meat.

Inflation hits vegetarians the hardest

Although inflation fell in June to 11,5% y/y, it food prices at the same time increased more, as much as 17,7 percent, including the price of meat itself - 13,6 percent. Only since the beginning of the year, the prices of pork, which is the most popular meat on the Polish barbecue, have increased by 9,5 percent. Poultry went up 2% and beef went up 1,5%. If someone chooses a sausage for a barbecue, the price of cold meats increased by 6,2 percent. Lovers of fish and seafood also pay more, because these have gone up by 4,9 percent. However, inflation hit vegetarians the hardest, as vegetable prices jumped by as much as 16,5% since the beginning of the year.

Price increases in Poland are the result of increases in world prices. World pork prices have increased by 26% since the beginning of the year. in dollars, and taking into account the strengthening of the zloty against the American currency by 9,5 percent, this means increase for Poles by 14 percent. The increase in prices is the result of growing demand in the world. For many consumers around the world, pork is an alternative to beef, which is currently extremely expensive (its price has increased by 16% in USD and 5% in PLN since the beginning of the year). As much as 2,4 kg of pork can now be bought for a kilogram of beef on the world market, it is hardly surprising that consumers choose such a cheaper option in a period of recession concerns. The increase in pork prices in the world is also influenced by the growing demand for it from China, as well as regulations emerging in the US to improve the welfare of farmed animals.

However, this year, at many barbecues poultry will be the main meat, whose prices on global markets fell by 11,8 percent in dollars. In PLN, this is a decrease of as much as 20%. Although this decline has not yet been seen in Polish stores, it should occur within a few months.

Since the beginning of the year, the prices of beef and pigs expressed in dollars have increased by double digits. The prices of other smaller food commodities also increased (from our eToro Breakfast Index). At the same time, the Bloomberg Commodity Index (BCI), a broad commodity index, fell by 10 percent. Commodities are currently the worst-performing asset class after being among the top performers for the last 24 months.

How meat prices have changed since the beginning of the year in Poland and on world markets (in PLN) [table]:

Source: Source: Central Statistical Office, Refinitive, 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.