The Nutella factor

As I sit at my breakfast table writing today’s Instagraph, I’m looking at some inflation numbers in action. In Germany, food prices have risen 38.4% since 2019. One telling example from today’s chart posted by the CIO of Syz Group: the price of a jar of Nutella has climbed from €5.06 to €7.05. Nutella is a powerful brand — and I suspect they’ve made full use of their pricing power. Of course, raw materials for this much-loved (if not exactly healthy) hazelnut spread are volatile, but the fact remains: Germany is leading Europe in food inflation, and the average household now needs almost 40% more in its budget just to cover groceries.