Food industry monitoring group foodwatch has called for the establishment of a price monitoring organisation in Germany, claiming that despite falling raw material and energy costs, retailers are keeping food prices high.
The non-profit's latest Preis Radar study found that private-label prices are 'almost identical' across several large grocers, accusing retailers of raising prices sharply after the pandemic, but not lowering them once the economic situation became more manageable.
'Completely Broken'
Competition in the marketplace is "completely broken", campaign manager at foodwatch, Laura Knauf, commented. "Companies are engaging in price gouging despite falling energy and raw material prices – and are adjusting their prices almost simultaneously, which raises suspicions of possible price fixing.
"The victims of this non-transparent system are the consumers, who have to spend more and more money on food."
According to the Federal Statistical Office, food prices in November 2024 were 34% higher than in November 2020, compared to a 19% rise in overall consumer prices during the same period.
Rising In Tandem
One example cited by foodwatch related to the price of own-brand yogurt at Aldi, Rewe, and Edeka, which stood at €0.89 in June 2024. The following month, the price increased simultaneously by €0.06 across all three retailers.
Similarly, coffee prices for own-brand products rose from €4.29 to €4.79 in July 2024 at all three retailers, with further increases observed in January 2025 at Aldi and Rewe.
Knauf called on the next federal government to "put an end to price secrecy" in the Germany retail market, and promote fair competition.
"A price monitoring agency should keep an eye on the big corporations and make price developments public in an easy-to-understand manner," she commented.
A study by industry body Verbraucherzentrale Bundesverband, conducted in late 2024, found that 30% of German consumers have reduced spending in other areas to afford food, with the figure rising to 58% among households earning less than €1,500 per month.
