Inflation is rising in Poland every month. The high prices of staple foods force people to save as much as possible. This is why the “trading down” phenomenon is becoming more and more frequent. As Jeronimo Martins, owner of the Biedronka stores notes, Poles decide to buy cheaper substitutes.
So far, the Poles have chosen their favorite products without thinking too much. Unfortunately, the rise in food prices has forced many customers of the famous chain to change their shopping habits. More and more we decide to choose cheaper and private label substitutes from Biedronka, Lidl or other grocery stores.
So far, the phenomenon has mainly been seen in Portugal and Colombia, as Ana Virginia, chief financial officer of Jeronimo Martins, quoted in Trade News.
At the end of the third quarter of 2022, the network noticed that such customer behavior is starting to show in Poland as well – writes the industry website.
These are not good predictions. They can mean, for example, the grueling savings accumulated in a pandemic. Currently, the raging inflation is depleting the resources of the Poles. The decline can have a positive effect, however, as it “amounts to weakening acceptance of price increases and should act disinflationistically,” the service said. However, experts agree and admit that we will not see a decline in inflation in the near future – quite the opposite.
In October, inflation in Poland was 17.9 percent. This is the highest result since December 1996. In the 1990s, however, inflation steadily dropped from the level of the famous post-systemic hyperinflation.
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