Brussels, 8 May 2023
See question(s) : P-000876/2023
EN
P-000876/2023
Answer given by Mr Wojciechowski on behalf of the European Commission
(8.5.2023)
1. Beyond significant differences between Member States1, farmer price indices (following raw materials and food commodities’ prices) increased first, followed by processor prices and finally retail prices. Recently, farmer prices have peaked and are now on a decreasing trend, processor prices are increasing at a reduced pace, and retail prices’ increase rate seems to stabilise2. Energy prices decrease since October 2022, which should contribute to a reduced inflationary pressure also on food.
2. As the Commission pointed out in its answer to written question E-000410/2023, the Commission together with National Competition Authorities is monitoring markets to identify and investigate any practices that may inflate food prices.
3. The Commission has put in place different market-oriented tools to alleviate food inflation, as announced in a communication in March 20223, including an exceptional support package, and as enacted through the (now) Temporary Crisis and Transition Framework for State Aid measures4. The Commission also supports national initiatives likely to improve affordability of food for the most vulnerable households like the creation of food vouchers or value-added tax (VAT) reductions on essential food. However, as the Commission pointed out in its answer to written question E-000276/2023, the single market is the EU’s main asset for the recovery and resilience of its economy. The Commission pays continuous attention to the measures Member States put in place and assesses their compatibility with single market freedoms. Price control measures are likely to interfere with the functioning of the single market to the detriment of European consumers and also of farmers.
1 In February 2023, food inflation year-on-year is 9.1% in Cyprus for a general inflation of 6.7% while it reaches 47% in Hungary for a general inflation of 25.8%. Source: Eurostat, also available on the European Commission https://agridata.ec.europa.eu/extensions/FoodSecurity/FoodSecurity.html
2 https://agriculture.ec.europa.eu/data-and-analysis/markets/outlook/short-term_en
3 Communication on safeguarding food security and reinforcing the resilience of food systems, COM(2022)133 final. https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2022:133:FIN
4 Temporary Crisis and Transition Framework for State Aid measures to support the economy following the aggression against Ukraine by Russia. https://eur-lex.europa.eu/legalcontent/EN/TXT/?uri=CELEX:52023XC0317(01)