Spain: Mysterious increase in fruit and vegetable prices in supermarkets despite lower producer prices

Published 2023년 3월 9일

Tridge summary

The prices of fruits and vegetables have seen a decrease at the source but an increase in stores, despite the Spanish government's decision to abolish VAT on basic food products for six months. A complaint has been filed against seven retail chains for not passing on the VAT reduction to consumers. The average price of a shopping basket of vegetables and fruits has seen a drop at the manufacturer but a rise in supermarkets. The profit margin for some vegetables and fruits is substantial, with garlic having a profit margin of almost 900%. The government is investigating companies that are profiting from consumers and blames high inflation and the energy crisis for companies' inability to fully pass on cost increases to prices.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In recent weeks, the prices of some fruits and vegetables have become cheaper at source, but they have become more expensive in stores, so although the farmer receives less, the consumer pays more. Why such prices? For example, the price of lettuce dropped by almost 21 percent in the countryside, while it increased by 8.5 percent in the store. Red pepper became cheaper by almost 22 percent, but in supermarkets it increased by 23 percent. The price of olives fell by 26%. at source, but increased by 6 percent. in supermarkets. The Spanish government abolished VAT on basic food products, including fruit and vegetables, for six months from the beginning of January, but this is not visible in retail prices. Already in mid-January, the consumer protection organization FACUA filed a complaint with the national competition commission against seven retail chains that did not transfer the VAT reduction to consumer prices. The average price of a shopping basket of vegetables and fruits, ...

Source: E-warzywnictwo