Food prices are exploding: record costs endanger everyday budgets!

Food prices in Austria are reaching alarming levels! Since the wave of inflation began in September 2021, the cost of basic foodstuffs has skyrocketed. According to the current price monitor from the Chamber of Labor (AK), which examined the prices of 40 of the cheapest foods in seven Viennese supermarkets, penne pasta, for example, has increased by an 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 cost 51.13 euros in 2021 now costs almost 78 euros - an absolute record! This development is particularly alarming because there are hardly any products that are currently becoming cheaper, as the AK Price Monitor documents, where only cucumbers and liquid laundry detergent have fallen in price.

But it's not just the prices that are rising! Shopping behavior has also changed since the beginning of the corona pandemic. Statistics show that around 50 percent of food retail purchases are now made cashless, an increase compared to 30 percent before the crisis, as reported by Spar. This trend towards digitalization 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 by the energy price crisis and ongoing inflation, which gained momentum again at the beginning of the year. Even extreme weather conditions that affect the production of cocoa and coffee are contributing to the situation, reports the Standard.

A look at the competition

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