For the first time ever, supermarket prices in May 2024 have seen an annual decline, dropping by an average of -1.25% compared to May 2023, according to a survey conducted by the Research Institute of Retail Consumer Goods (IELKA) across major supermarket chains.
The May 2024 supermarket price index reflects a negative inflation rate of -1.25%, contrasting with the +1.10% in April, +0.28% in March, +2.70% in February, and +3.00% in January 2024. This shift compared to April is attributed to ongoing price decreases and seasonal effects surrounding Easter, marked by robust promotions during the Holy Week period.
Notable reductions were observed in categories such as butter and eggs (-7.50%), stationery, cosmetics, and personal hygiene items (-5.62%), fresh fruit and vegetables (-4.04%), cheese (-3.97%), and alcoholic beverages (-3.74%). Factors contributing to these declines include market normalisation post-pandemic and reductions in producer prices for certain items, with Easter promotions benefiting products like butter and eggs. Favourable weather conditions in 2024 also impacted fresh fruit and vegetable prices positively.
Conversely, categories experiencing the largest price hikes include cookies, chocolates, and confectionery (+5.85%), fresh fish and seafood (+4.42%), ready meals (+3.13%), food and pet supplies (+3.05%), and waters and soft drinks (+2.79%). Many of these items are influenced by international raw material prices, particularly sugar and cocoa.
(Source: Amna)