If VAT had not been reduced on basic food products, the price increase in this sector would have been 18.1% in February, which would have been almost two points worse than the value reflected in the final CPI calculation published by National Statistics a week ago. Institute (INE). But the result also works in reverse: meat And fish In the package of items with a lower tax burden than usual, inflation would have increased by almost two percentage points: If VAT had increased from 10% to 5%, it would have risen to 14.9%, if it had decreased to 12.9%. remained at zero.
This is stated in a report released Tuesday. Manufacturers and Distributors Association AECOCAnd PWC consultingusing this data to celebrate the decision taken by State not just about VAT at the end of last year, but also claiming that the discount should include meat and fish. First of all, because, as this study concludes, distribution industry very limited when applying new price containment measures.
“Only two countries decide limit the price of food those with high levels of food inflation: Croatia It has accumulated 19.7% since the beginning of 2022, and especially Hungarycurrently facing a food CPI of 62.4%, the highest of all Europe‘ points to the association, in a clear reference to the controversy opened months ago by Yolanda Díaz, the second vice-president of the government, and which is now returning to the table. France reached an agreement with the main supermarkets in the country to establish limited priced shopping carts.
“We not only understand and share the concerns of the community, but also value chain Working harder than ever before in search of the formula to stop it. price increase“, in this sense, preserves ACOC CEO, Jose Maria Bonmati. “In the current context, all links in the agri-food chain are strengthening their cooperation and dialogue to be more efficient and productive. bear some of the increased costs“, says the same responsible person in a statement.
5.7% margin
In fact, according to the data in this report, which was prepared to examine the decline in business margins in the industry as a result of rising costs, retail trade is closing the year 2022 profitably. approximate profit margin 5.7% is almost one point lower than the previous year and more than one point lower than in 2020, when it grew abruptly from the full 5.8% it pointed to in 2019.
“HE food retail It has the largest weight in statistics, and the first results presented by the main distribution chains confirm what companies in the sector have undertaken in 2022. higher costs for price increase applied and those profit margins have dropped,” says the study.
On the other hand, this analysis also Food Origin and Destination Price Index (iPods) is an indicator that shows how much the price of a product has multiplied from the field or factory until it reaches the consumer, and is in free fall as well as the lowest value in the last five years. “This shows that the entire chain is reducing its margins so as not to pass on the overall cost increase to households,” says AECOC.