The difference between the fall in the price of raw materials and the rise in store prices raises questions. So how can such a difference be explained? Explanations.
The price of raw materials is falling and yet, on the shelves, prices continue to rise. Wheat flour took +17% in one year. Same observation for yogurts, which themselves took +19.5%. “I have for 60 balls there in my cart. Not very long ago, I would have had for a little less, even frankly less”, details an annoyed customer. But how can this phenomenon be explained? In reality, these ingredients are only part of the final cost of a product.
A delay due to negotiations
But it is not the only reason. For example, with durum wheat: its price may have been falling for eight months, yet the price of a packet of pasta continues to rise with +15% in one year. This discrepancy would be due to the pace of negotiations between manufacturers and distributors. “France is extremely strict. A single price negotiated once a year on March 1 and a rate of renegotiation every three months”, justifies an expert. The government has requested the reopening of trade negotiations this summer.
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