Supermarkets still increasing prices above IVA reduction

Continuing with their campaign monitoring the price of goods in supermarkets, the FACUA-Consumers in Action group report that prices on some products, especially those where the IVA reduction should be applied, are still increasing.

In this latest audit, the group checked on the evolution of 1,000 food prices affected by the IVA reduction in eight large distribution chains. Four out of ten of the products analysed by the association have raised their prices. In April, it was the same situation, with four out of ten increasing, whereas in March there were one in three who had become more expensive, and in February one in five.

Given these facts, FACUA is going to extend the complaints that it already filed in January, February, March and April before the National Commission for Markets and Competition (CNMC), which to date has not given any type of response. The complaints will again be directed against all the chains under analysis: Alcampo, Aldi, Carrefour, Dia, Eroski, Lidl, Hipercor and Mercadona.

A thousand prices analysed

The association, as it has been doing monthly, has reviewed the evolution of 1,000 prices in these eight distribution chains. The new analyses have been carried out on May 2, 3 and 5. In them it has detected that in 438, that is, 43.8%, the price has become more expensive compared to what they had on December 30, once the IVA reduction was applied.

Article 72 of Royal Decree-Law 20/2022, of December 27, states in its section 3 that ” the reduction in the tax rate will fully benefit the consumer, without, therefore, the amount of the reduction being able to dedicate totally or partially to increase the business profit margin with the consequent increase in prices in the production, distribution or consumption chain of the products”.

FACUA reiterates the Government’s lack of transparency regarding the studies announced by the Ministry of Agriculture, Fisheries and Food through its price observatory. To date, not only have no data been disclosed about their conclusions, but also about how many establishments, how many prices and on what dates the analyses are being carried out. In fact, Agriculture has not even confirmed if it is actually carrying them out as announced in January.

In this sense, the association has requested from the data related to these alleged price monitoring through the Transparency Portal.

Aldi continues to increase more

This May, the largest number of anomalies have been detected at Aldi, where 32 of the total 58 prices analysed have become more expensive (55.1%). It is followed by Carrefour, with 85 more expensive products than on December 30 out of a sample of 163 prices (52.1%).

Hipercor for its part, has increased 80 of the 168 prices analysed (47.6%), while Dia has done so in 62 of the 138 foods collected in this study (44.9%). The association has detected 28 more expensive prices in Lidl out of a total of 63 foods (44.4%), while in Alcampo 59 items of the 133 contemplated have become more expensive (44.3%).

The two chains where the lowest percentage of price increases have been registered are Eroski, with 48 products out of the total 131 included in the analysis (36.6%) and Mercadona, with 44 increases among the 146 prices registered (30, 1%).

This total of 438 more expensive prices represents a slight increase compared to the 416 detected in April on a very similar sample (1,000 this month compared to 991 last month). Therefore, in the last month there have been about twenty products affected by the IVA reduction that have increased their price with respect to those that had already become more expensive during the first four months of the year.

For their part, Alcampo and Lidl are the only two distribution chains in which in May the total number of foodstuffs that have increased their prices compared to what they were last April has been reduced.

Fruits and vegetables lead the rises

Of the total of 438 prices in which FACUA has detected a rise in its comparison, 147 correspond to fruits or vegetables (33.4% of the total), 82 are mostly olive or sunflower oils (18.6 %) and 66 are milk or dairy (15%).

For their part, 62 price increases have been found among rice and pasta (14.15%) and 37 among legumes (8.4%). The thirty remaining prices correspond to eggs, flour and breads.

Oranges, potatoes and onions skyrocket in price

The biggest price increases in the last month correspond, as usual, to fruits or vegetables. Specifically, oranges and potatoes have become significantly more expensive in some supermarkets.

In Dia, the 3-kilo mesh of washed potatoes has already increased its price by 70%, from 2.88 euro in January to the current 4.89 euro (0.60 euro more than in April). For its part, the package of Brillante Sabroz rice has gone from 1.88 to 2.68 euro, which represents a 42.9% increase in cost.

At Hipercor, table oranges by weight are 108.7% more expensive than when the IVA reduction came into force in January (from 1.72 euro -it was on sale- to 3.59 euro). The kilo of Buti onions continues to be 62.8% more expensive than in the first month of the year (from 1.53 to 2.49 euro).

In Alcampo, the bottle of Carbonell extra virgin olive oil has become more expensive by up to 55.45%, going from costing 25.72 euro in January to 39.99 euro in May. In Aldi, despite being the distribution chain with the highest number of increases, the percentage of them is not so pronounced. The kilo of Carrot El Mercado has risen by 36% (from 0.85 euro to 1.19 euro).

In Eroski it is also the kilo of Buti white onion that has become more expensive between the first and fifth months of the year (59% – from 1.49 to 2.37 euro-). At Carrefour, the kilo of pomegranate continues to be the most flagrant case with an increase of 160.7% (from 1.91 euro in January to 4.99 euro in May).

Lidl, the one-kilo mesh of onions, has raised its price by 69% this month compared to what it was in January (from 1.39 to 2.35 euro). At Mercadona, the 2-kilo mesh of onions has gone from 2.39 euro in January (already with the IVA reduction applied) to 3.99 euro in April, representing a 66.9% increase in cost.

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