Skyrocketing Food Prices Propelled by Wholesaler Margins

[esaima]

Thanks to big markups, wholesalers had one of their best showings ever in the third quarter, says the Bank of Estonia.

Last year the average markup on food, beverages and tobacco was 14 percent but this year it has been two percentage points higher, said Bank of Estonia economic analyst Martin Lindpere.

This has resulted in higher prices being passed forward to consumers. According to Statistics Estonia, food prices rose 2.2 percent in November alone, and the prices have risen 11.6 percent this year, accounting for 52 percent of Estonia's overall inflation.



Although he outlined more than one scenario, Lindpere said inflation in food prices could be temporary. "Based on experiences from 2006-2008, it can't be ruled out that after a very steep increase, prices will become lower," said the analyst, suggesting a correction could take place driven by economic reality.

http://news.err.ee/economy/592d4416-ad2b-4752-ab58-d12fbf0b7dd6

.

[esaima]

Stand up, Euro is coming...

Newly released figures from Statistics Estonia show that the nation's prices are continuing their upward trend. The November consumer price index was up 5.3 percent compared to the same month of last year and 0.3 percent compared to October.

Goods were 6.5 percent more expensive than a year ago, and services 3.2 percent.

The largest influence on the annual rise, accounting for more than half the change, was an 11.6 percent increase in the price of food and non-alcoholic beverages. That figure in turn was pushed up mainly by a 19.7 growth in the price of dairy products and a 40.6 percent growth in the price of vegetables.

Over the year the most dramatic increases came in the price of fresh vegetables (74.9 percent), apples (46.5 percent), milk (39 percent), coffee (33 percent) and butter (30.4 percent).

About a fifth of the CPI growth over the year was due to a 10 percent increase in the price of electricity, heat energy and fuels, according to the report.

Not all the change was in one direction, however. The prices of photographic goods and TV sets dropped 20.8 and 11 percent respectively.

The 0.3 percent rise in the index from October to November was mainly an effect of a 2.2 percent increase in the price of food and non-alcoholic beverages, which overrode the impact of a 6.8 percent decrease in the cost of mobile telecommunication services.

http://news.err.ee/

[Äike]

Palgad võiksid ka tõusta...