October 30, 2015 FPI | The Difference Between Retail And Wholesale Prices
30 October 2015

October Retail FPI was pretty stable showing a negligible 0.1% decrease in the 4th week of October compared to the middle of the month. (See the diagram with Retail FPI dynamics on the right).

Apples lost in price 31%, coffee whose price is usually very stable, became cheaper by 21% (due to discount offered by one of the supermarkets) and rice price decreased by 13% (again due to discounts offered by one of the supermarkets). However not all the foods became cheaper. Cucumbers gained in value 78%, followed by onions, whose price increased by 23%. Tomatoes and greens showed a 21% and 20% price increase respectively. Thus the biggest changes in prices not surprisingly happened for vegetables and fruits which are seasonal foods.

Do wholesale prices follow the same trends?

Supermarket prices are retail prices and one can expect differences between prices offered at farmer markets - so-called “bazaar” and supermarkets. The diagrams show the differences in wholesale and retail prices of the products with the biggest rise (cucumbers) and fall in retail price (apples).

Wholesale prices increase for cucumbers and decrease for apples similarly to retail prices. The difference between retail and wholesale prices is quite small for cucumbers and much larger for apples suggesting different strategies and profit margins applied to various products by supermarkets.