Bad news for consumers. It’s about the prices of products in stores

The latest report by UCE Research and WSB Merito Universities reveals significant changes in the dynamics of retail prices in Poland. The analysis conducted on the basis of data from over 684,000 retail prices from 317,000 stores in May 2024 indicates that the number of product categories that recorded a price drop is decreasing month by month.

According to the report, in May this year, only four out of seventeen monitored product categories became cheaper year on year. This is a decline compared to April, when five categories saw price declines, and March, when as many as nine categories saw prices drop.

Product prices in stores. Negative forecasts

The authors of the report predict that the slowdown in downward trends will continue due to inflationary pressure. A return to price increases in some categories, including fatty products, dry products and vegetables, is also possible.

“We can now enjoy local vegetables, which affects their prices. However, weather anomalies may reverse the decreasing price trend,” summarizes Dr. Justyna Rybacka from WSB Merito University.

Fewer and fewer products are cheaper in stores

“The decreasing number of cheaper groups of goods suggests that inflationary pressure is once again affecting most product groups,” comments Dr. Joanna Wieprow from WSB Merito University.

The biggest price reductions in May concerned fat products, the prices of which dropped by 10%. rdr. In April the decline was 104% and in March 221%. The main reasons are long-term reductions in rapeseed prices and high harvests of oilseeds last year. However, these supplies are running low and frosts could impact this year’s harvest, which could lead to price increases in the coming months.

Other categories that recorded declines included pet food (81% yoy), dry products (36% yoy) and vegetables (33% yoy). However, the prices of these products may also increase due to stabilization of raw material prices and changes in weather conditions.

About the study

The “Retail Store Price Index” report is the result of cyclical research conducted for nearly 7 years. The latest version compares the results from May 2024 with the same period in 2023, covering 17 categories and the 100 most frequently chosen everyday products.

The authors of the study stipulate that the above analysis is not a measure of the increase or decrease in the general level of inflation, but is an indicator of retail price trends in Polish stores.