2 hours Ago
Government Measures Adding Fuel to the Fire
CBL isn't just pointing fingers at international factors. The association is directly calling out a range of government-imposed measures it says are driving up costs without delivering any real benefit to shoppers. These include the sugar tax, a truck toll, energy levies, hikes to both the minimum wage and the youth minimum wage, and a series of additions layered on top of existing European regulations. Together, CBL argues, these policies are quietly squeezing supermarkets from every direction. The trade body is "emphatically" urging the Cabinet to hold off on rolling out these measures anytime soon.
The timing couldn't be worse. Consumer confidence is already shaky, and people are watching their spending far more carefully than before. Supermarkets in border regions are feeling this especially hard — many Dutch shoppers are crossing into Germany or Belgium to pick up groceries and even fuel, where tax structures make everyday products cheaper.
A Slow Burn That Shoppers Will Eventually Feel
Part of what makes this situation tricky is the delay between when costs rise and when consumers actually notice. Since supermarkets sit at the very end of the supply chain, price increases caused by higher fuel and energy costs don't hit the shelves immediately. CBL notes that, depending on the product, that lag can stretch anywhere from four to twelve months.
Layered on top of that are the ongoing pressures of global disruptions and the conflict in the Middle East, both of which are already nudging food prices upward. The supermarket sector fears that piling domestic policy costs onto an already strained system will push groceries beyond what many households can comfortably afford.
