What about food prices?
This year the prices of food are to rise slightly. Experts estimate the growth at 2%.
The first reason for this situation is growing sales of Polish food abroad. Despite allegations directed at Polish food manufacturers, in the first half of 2013 we exported 14% more goods than in the same period on 2012. By the way, if the total value of agricultural products exported in 2012 reached 18 billion EUR, isn’t it likely that this year the figure will reach a record high?
The increase in prices is not only caused by international trade exchange and inflation, but also the rising needs of the farmers. This does not mean that agricultural producers are greedy, but indicates the necessity to gain resources to invest in modernization of the production technology. Such progress is vital if one wants to expand the volume of produced goods, making them more available on the market, and, as a result, cheaper. Without investment, it would be impossible to maintain the current level of food pricing.
What may stop the prices from rising
A factor counteracting the market pressure to drive prices up might be the falling rate of growth of disposable income of Polish citizens. Budgets of families have been growing far more slowly since the global economic crisis broke out. September 2013 data shows that the average salary in commercial companies had risen by 3.6% in the past 12 months. Shrinking wallets trigger stop decisions about buying consumer goods. This has stabilized food prices to a large extent.