Evolution of food prices during 2024

The Secretary General of Agricultural Resources and Food Safety, Ana Rodríguez, chaired the fourth meeting of the Food Chain Observatory plenary session for 2024, which in December analyzed the evolution of prices and consumption habits of food and beverages, as well as information on the Business Margins Observatory, offered with data from the State Tax Administration Agency (AEAT).

The main data that we highlight are the following:

• Slowing down of price increases in 2024, with weeks of decrease in the average price during the summer and with a certain rebound in the weeks of the month of October.
• The increase in prices slows down quarter by quarter, with the most moderate prices in the third quarter, where the decrease in products such as milk, eggs and legumes stands out. Meanwhile, fresh products show an increase in the average price lower than the rest of the food.
• The evolution of spending on food for domestic consumption is slightly lower than that of spending outside the home.
• Private label growth slows, although it is above the 2023 closing market share.

Summary of the report on household consumption (Kantar, November 2024)

• Evolution of household consumption 2024:
  • Increase in spending on food, although lower than inflation.
    Food at home grows at a slower rate than food outside the home.
  • Greater presence of private label brands, which represent 46% of the value of packaged food (increase compared to 45% in 2023).

• Evolution of prices:
  • Price containment in 2024, with more moderate weekly increases and periods of decrease.
  • Increases of less than 3% in key months such as February (2.3%) and April (2.6%).
  • Stable prices and even declining during the summer months (July: 1.4%, August: -0.1%).

• Key products:
  • Price reductions in basic products such as milk, eggs, fresh bread, legumes and rice during the second quarter of the year.
  • Price declines in fresh vegetables and containment in fresh products in general.

• General conclusions:
  • Food spending is being affected by the containment of inflation and the growth of distributor brands.
  • A stabilization in food consumption within the home is observed, with patterns influenced by the moderation of prices and consumer preferences.

More information at this link.