Food prices explode: record costs endanger everyday budget!

Food prices in Austria reach alarming heights! Since the start of the wave of inflation in September 2021, the costs for basic foods have literally shot up. According to the current price monitor of the Chamber of Labor (AK), which examined the prices of 40 of the cheapest foods in seven Viennese supermarkets, penne noodles, for example, have increased astonishing 97 percent, coffee by 88 percent and even basic foods such as eggs and bread have become significantly more expensive. A shopping basket that still cost 51.13 euros in 2021 costs almost 78 euros - an absolute record! This development is particularly alarming because there are hardly any products that are currently cheaper, such as the AK price monitor, where only cucumbers and liquid full detergent have fallen in the price.

But not just the prices rise! Shopping behavior has also changed since the beginning of Corona pandemic. Statistics show that around 50 percent of the purchases in the food retail trade are now being handled without cash, an increase compared to 30 percent before the crisis, as reported by SPAR. This trend towards digitization also extends to the use of artificial intelligence to reduce food waste. Nevertheless, it should be noted that the price increases were not primarily caused by Corona, but rather due to the energy price crisis and persistent inflation, which gained dynamics again at the beginning of the year. Even extreme weather conditions that affect the production of cocoa and coffee contribute to the situation, reports the standard.

A look at the competition

The competitive landscape in the food retail trade has also changed. In Vienna, in addition to established names such as Billa and Hofer, numerous online providers compete for attention and market shares, including Gurkerl and Hausfreund. But not everyone is successful: the two domestic pioneers in the online food business, MPRIST and Unimarkt had recently had to close their online shops due to economic difficulties. The dense market structure in Austria, which is exceptionally high in international comparison, makes it difficult for newcomers.