Inflation continues to rage in Western Europe, with monthly consumer prices soaring by over 14% in the UK and more than 10% in Germany, according to a Nikkei report. Some retailers have been hiking prices out of proportion with their underlying costs, it claimed.
Roughly 50% of price increases in the region resulted from local companies passing higher costs on to consumers, the outlet estimated. Consumption has slumped across the region as price increases have outpaced wage growth.
Nikkei cited an analysis of annual results from 70 European food retail and manufacturing companies by the management consultancy Oliver Wyman, which reportedly found that absolute EBITDA (earnings before interest, taxes, depreciation and amortization) rose by 11% at food retailers and 12% at manufacturers in 2022, compared to the previous year. That growth was mostly driven by increased revenues.
“Companies in the food sector viewed the inflation context as an opportunity to review their price…