Vienna, Austria – August 12, 2024 – Austrians are facing a sharp increase in grocery costs, with the price of a standard basket of 17 essential food items nearly doubling over the past decade, according to new data. The surge is particularly pronounced at discount supermarkets, raising concerns about affordability for budget-conscious shoppers.
Analysis reveals that prices at discounters have risen by over 60% since 2015, with some retailers experiencing increases of almost 90%. The data, compiled by the Upper Austrian governmentS price radar (https://www.land-oberoesterreich.gv.at/was_internetpreisradar.htm#/search), details specific inflation rates across major supermarket chains including Spar, Rewe, Hofer, and Lidl.
Market Density and Regulation Under scrutiny
Stefan Kaineder, the Green Party’s consumer protection spokesperson for the state of Upper Austria, attributes the high food prices to inadequate planning and an exceptionally high supermarket density. Austria boasts approximately 60 supermarkets per 100,000 inhabitants, significantly exceeding the EU average of 33 per 100,000. This over-saturation, Kaineder argues, limits competition and drives up costs for consumers.
Finance Minister Markus Marterbauer (SPÖ) has proposed government regulation of food prices, a move welcomed by Kaineder. The discussion centers around potential measures to increase market openness and prevent price gouging. The Austrian Chamber of Commerce (Wirtschaftskammer Österreich) has expressed reservations, citing potential disruptions to the supply chain and impacts on retailer profitability.
The basket of 17 basic products used for the price comparison includes staples such as milk, bread, eggs, potatoes, sugar, flour, pasta, cooking oil, and various fruits and vegetables.The analysis specifically focused on prices observed in supermarkets across Vienna, Linz, salzburg, Innsbruck, and Graz.
