Food price increase to slow down significantly this year

Agricultural production prices may grow by 2-4% percent on an annual basis, while domestic food prices can increase by 3-5% percent, and food prices in retail are expected to grow by 3-4% on average compared to a year earlier, informed Zoltán Fórián, chief agricultural expert at Erste Agricultural Centre. Retail volume sales will start to climb again in 2024, but shoppers still can’t afford everything they used to, which is why cheaper private label products and customer loyalty schemes are undergoing a renaissance. Global food prices will also continue to rise this year. János Nagy added that unlike in the previous two years, food price developments could pull inflation down rather than up in 2024, with Erste forecasting 4.7% percent for this year. //