0 VAT foodstuffs see price uptick

 In Food retail and distribution, Foodstuffs and beverages, Inflation, News

An average shopping basket of essential goods that the government has exempted from VAT has shot up to €130 in just one week according to price watchdog Deco.

According to Deco, a consumer watchdog, a shopping basket of VAT exempt goods is now €5.20 dearer as from September 13.
The conclusion was reached by monitoring 41 of 46 foodstuffs including chicken, turkey, sprats, cod, onions, potatoes, carrots, bananas, apples, oranges, rice, pasta, sugar, milk, cheese and butter that since April 18 have been exempt following an agreement between the government, distributors (supermarkets and shops) and farmers.
This basket of 41 products last week cost €130.47, an increase on the week before, although it remained below the price of the same basket when the agreement came into force when it stood at €138.77.
It was introduced partly because food items such as oranges, olive oil and carrots had shot up by 50% since the start of the war in Ukraine in 2022.
Compared to just before the zero VAT regime was introduced, all categories of products became cheaper, benefiting from the government-led measure with the exception of one: fruit and vegetables were more expensive when compared to April. Broccoli, for example shot up 50%, and oranges have gone up by 38%.
In the weekly variation, between products that have most gone up in price from one week to the other, fresh fish is up by 58%, dried codfish is up 16%, liquid yoghurt is up 12%, and extra olive oil is up 9%.
And the average shopping basket taking in a wider range of 63 foodstuffs now costs €215.75, up €.4.42 on the week before.