Food and drinks will become even more expensive in the coming months

11 jan 2023 om 05:01Update: 18 minuten geleden

In the coming months we will pay even more for meat, dairy products, cereal products, oil and vegetables. But the prices of, for example, care products, pens, cleaning products and pans will also continue to rise. The same goes for a glass of wine and dinner in the restaurant industry, various economists and industry associations tell NU.nl.

Inflation has been through the roof over the past year. Prices are up no less than 10 percent from 2021. It was close to breaking a record from the 1970s.

According to Rabobank economist Hugo Erken, energy has been the main culprit over the past year. “We expect inflation to be 4.6% this year, but energy will have a less negative effect on that. Food prices will rise by around 11%. Grocery and supermarkets are therefore currently leading heated negotiations”.

Erken also refers to the rise in core inflation, which excludes food and energy prices. “We see wages going up, so that puts extra cost pressure on entrepreneurs. They’re going to pass that on to the customer.”

‘Wage costs will continue to rise’

ING Research assumes an inflation rate of between 4 and 5%. “In general, we can say that the high price increases are not over yet,” says ING economist Marcel Klok. “For example, there are still many products whose costs have not yet been passed on to the consumer. In addition, wage costs continue to rise.”

He assumes food will get more expensive in the coming months. “This is partly due to high commodity prices. Grains and oil have become significantly more expensive due to the war in Ukraine. Rising food prices will be a bigger component this year.”

The bakers will continue to raise their prices

Arend Kisteman, president of the Dutch Bread and Pastry Bakers Entrepreneurs Association (NBOV), says a significant price hike is imminent. “The question is what the grain prices will do, but at the moment they are still at a high level. In addition, the bakers have to contend with high energy prices and rising wage costs. They will pass them on to the customer.”

Koninklijke Horeca Nederland (KHN) points out that concerns among catering entrepreneurs are on the rise. At present, the industry is facing many setbacks, such as skyrocketing inflation, severe staff shortages, and low consumer confidence, leading people to spend less money.

“In addition, many entrepreneurs have high corona debts that have to be repaid, while they have not yet recovered from the corona period. In the last year, all prices, both for private individuals and entrepreneurs, have risen. We understand that other companies in the chain are adjusting their prices, but for restaurant entrepreneurs looking to recover after the corona virus, any challenges, including large price hikes, are extremely unfortunate,” says a spokesperson.

It is hardly possible for entrepreneurs to pass on the cost increase to consumers, because in that case they will stay away from the restaurant industry, explains KHN. “There is therefore a need for the cabinet to provide financial support to entrepreneurs, so that business in the restaurant sector remains viable.”