Belgium starts monitoring food prices monthly

The Prices Observatory is to introduce monthly monitoring of food prices, according to a decision by Economy Minister Pierre-Yves Dermagne (PS). The minister believes the food sector is not doing enough to fight rising prices, an accusation the sector itself denies.

Dermagne invited the Federation of the Belgian Food Industry (Fevia) to seek solutions to reduce costs for consumers. Dermagne stressed the importance of chain consultation to quickly reflect falling raw material prices in store prices.

Too soft

In response to the request, Fevia urged all parties in the agri-food chain to pay attention to the food price inflation problem. Dermagne, however, found Fevia's response too soft. He had hoped the industry would agree to anticipate the annual renegotiation of retail prices, given the global decline in many commodity prices, including energy prices.

As a result, Dermagne has launched a monthly food price check by the Price Observatory. He will pay special attention to striking price differences in the food sector between Belgium and its neighboring countries.

Noticeable price differences will be systematically reported to the Belgian Competition Authority, which may decide to investigate suspicious price developments. In extreme cases, the Authority may take temporary measures, such as freezing prices.

Industry fights back

The food sector refutes these accusations, pointing to the continued volatility of some prices, such as energy prices, and the impact of "historically high" wage indexation. It calls on the government to act, as it has the means to lower prices. In addition, the industry is concerned about plans to increase VAT, which they say will lead to further price increases for consumers.

Vrt.be