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Thread: The myth that grocery prices have fallen during the recession

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    Politics.ie Member Berchmans's Avatar
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    Default The myth that grocery prices have fallen during the recession

    Governments (especially the previous FF/Green one) have stated that the wage cuts, higher taxes, etc. during this era of austerity can be supported by the overall supposed fall in the cost of living.

    The propaganda is also spouted by contributors here on P.ie (on behalf of retailers) that if wages are reduced, then the retailing sector and supermarkets will accordingly adjust their prices downwards. By my own experience, I can't say that I've noticed that the cost of my weekly basket of groceries has declined. In fact, more the opposite over the past few years.

    Conor Pope in the IT has also noted the same thing, as concluded from a survey of the major Irish supermarkets:

    Grocery staples rise in price by 12% in less than two years, survey finds - The Irish Times - Mon, Feb 11, 2013

    Up 12% in two years.

    So, is price-gouging continuing unabated by Irish retailers, despite the recession?
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    Politics.ie Member sondagefaux's Avatar
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    Not a mention of Lidl or Aldi in that report, and all the products are branded, not supermarket own-brand. In other words, the report shows results based on not shopping around for better value.
    Mark Murray.

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    Politics.ie Member Berchmans's Avatar
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    Quote Originally Posted by sondagefaux View Post
    Not a mention of Lidl or Aldi in that report, and all the products are branded, not supermarket own-brand. In other words, the report shows results based on not shopping around for better value.
    From my own experience, admittedly anecdotal, the price of my weekly groceries has also risen for Lidl - where I do the majority of my weekly grocery shopping.
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    Politics.ie Member Heligoland's Avatar
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    Quote Originally Posted by sondagefaux View Post
    Not a mention of Lidl or Aldi in that report, and all the products are branded, not supermarket own-brand. In other words, the report shows results based on not shopping around for better value.
    Yeah. Shut up and eat your poisoned horse burgers.

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    Politics.ie Member Cellach's Avatar
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    The survey also found indications of widespread price matching across the State’s main supermarkets – Dunnes Stores, Superquinn, Supervalu and Tesco.

    There was a price difference of just 55 cent between the cheapest supermarket – Superquinn – and the dearest, Supervalu. The price of the basket of goods in Tesco and Dunnes Stores was identical.
    There's your problem.

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    Aren't bad harvests supposed to affect the cost of almost all groceries?

    Potatoes and bread have gone up, so therefore meat, milk, eggs and cheese etc. will follow?

    I even read that last year's cotton crop was devastated by floods in China, which will result in more expensive clothing, as material will now have to be sourced from the more expensive US and India.

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    Quote Originally Posted by sondagefaux View Post
    Not a mention of Lidl or Aldi in that report, and all the products are branded, not supermarket own-brand. In other words, the report shows results based on not shopping around for better value.
    That's not really the point. The question is, has a basket of groceries risen or fallen in price? By shopping around for value you are not comparing like for like over time.
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    Any person doing the shopping knows well, costs have gone up. Who would be foolish

    enough to listen to IBEC or government propaganda.

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    CAI, an organisation in terminal decline with very scant resources releases a trend-defying survey result across a narrow basket. Sorry but I think this story will boomerang shortly. The result is contrary to CSO and plain observation. Price matching is a common feature of tight competition. Aldi with its own brand range, now widened to a full basket, is about 20% to 30% cheaper saving shoppers a couple of grand if they are prepared to move off brands. For the moment I am taking the CAI effort with a hefty tablespoon of salt. They simply are not as accurate as CSO or NCA and this smacks of a poor publicity stunt sadly

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    Politics.ie Member Dame_Enda's Avatar
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    I blame overheads, charges by our state-monopolies like ESB, and upward-only rent reviews. To a lesser extent I blame a culture if reckless spending that began under the boom and continues among those who have weathered the recession better than others. Other reasons include unduly stringent and slow planning regulations, with too much of a bias towards objectors. This results in less competition, which keeps prices high. Big Government is Bad Government.
    Fair and Balanced

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