Retail prices in Poland increased by an average of 5.6% year-on-year in December 2024, according to a report by UCE Research and WSB Merito universities. This marks a slight rise compared to the previous months, which saw increases of 5.5% in November and 5.4% in October. “Prices in stores continue to grow steadily. While the rate of increase has not accelerated, it remains persistent. In December, daily shopping costs rose by 5.6% year-on-year, only marginally higher than the preceding months. As in previous months, all analyzed categories recorded price increases, with the largest being in household cleaning products, which surged by 10.3%,” the report stated. Key Price Changes Several product categories experienced significant price hikes in December: • Household cleaning products: +10.3% • Fats (butter, margarine, oil): +8.8% • Vegetables: +8.6% • Sweets and desserts: +8.4% • Fruits: +8.2% On the other hand, categories with the smallest increases included: • Pet food: +0.2% • Dry goods: +0.3% • Personal care products: +0.4% “The continued price growth aligns with overall inflation trends. However, the slight slowdown in the rate of increase reflects decreased consumer demand, as indicated by weak retail sales data in Poland,” said Tomasz Kopyściański from WSB Merito University. He also noted that pre-Christmas promotions and fierce price competition among retail chains mitigated further price increases. Retail chains reportedly reduced margins on certain products and offered additional discounts, which analysts estimate may have prevented an even higher price rise of 0.5% to 0.8%. The report highlighted that all 17 monitored product categories saw price increases in December, ranging from 0.2% to 10.3%. This pattern was consistent with November, though the range of increases was narrower. The moderation in December’s upper price growth was attributed to the stabilization of vegetable prices, which had surged by 16.6% year-on-year in November. The study analyzed 17 product categories, covering over 100 of the most commonly purchased items by consumers. Data was collected from more than 74,500 retail prices across nearly 35,000 stores belonging to 61 retail chains. The findings underscore the impact of inflationary pressures on consumer goods and suggest that while price growth may be slowing, household budgets remain under strain. Source: UCE Research, WSB Merito universities and ISBnews