Inflation at Coop and Migros: Are Groceries Really More Expensive?

Countries around the world are grappling with high inflation. The US and Eurozone are experiencing inflation rates in excess of 8 percent. By comparison, Switzerland almost seems well off with its average overall inflation rate of 2.8 percent since the start of the year.

As a price-sensitive millennial, I obviously wanted something more relatable than vague inflation rates. How is inflation actually affecting me? Are additional costs hitting me harder than the average rate would indicate? Or am I less affected than the average Swiss?

Luckily, I have always kept records of the prices of groceries which I buy or want to compare. Without these notes to refresh my memory, my brain isn’t quite capable of remembering individual prices over longer terms. So all I have to do now is compare my records with the current store prices to find out how much more I am paying for my shopping – at least assuming that the contents of my shopping cart have not changed much.

For the sake of simplicity, I’ve only included prices charged by Swiss retail giants Coop and Migros in this blog post, without accounting for special promotions. In reality, I often shop at budget supermarkets. If you want to save money in Switzerland, counting on the supermarket duopoly to help you out can prove unreliable. I also left out fresh produce, because the prices of perishables can change massively across weeks and seasons, and these fluctuations have nothing to do with inflation.

Double the official average inflation rate

For this post, I’ve used prices recorded at the end of September 2019 and the end of June 2022, so the time frame is nearly three years. According to the inflation calculator from the Federal Statistical Office, inflation across that period was 3.5 percent. That’s very low – and the bulk of it would have happened in the past six months.  

The total cost of my shopping cart, with all of the groceries I’ve compared, was 350 francs in 2019. In 2022, the total cost of the same shopping cart is 374 francs. That is a 7-percent price increase – double the official average inflation rate. I attribute this to the fact that I tend to buy budget products, and because margins on budget products are slim, I “feel” inflation more than people who buy brand-name goods.

Huge differences in price-hikes between products

Personally, I’m much more interested in the actual changes in the prices of specific products than I am in overall inflation. Out of the 109 products I compared, 56 of them – more or less half – have gotten more expensive. 24 of them have actually gotten cheaper. That makes for a huge range of price changes: From 50 percent price hikes to 25 percent price drops, depending on the product.

Pasta stands out the strongest, with many noodles being sold at Migros and Coop costing 50 percent more than they did three years ago. The macaroni from Coop Prix Garantie and Migros M-Budget are two examples (see table 1). The conflict in Ukraine – which already pushed grain prices to record highs early in the year – may well be the reason behind the high prices.

Table 1: The ten biggest price hikes in my shopping cart

If you’re wondering what poor old Raphael can eat in place of his beloved budget pasta, my analysis answers that question as well. Several of the 24 products which have become cheaper are good alternatives. Try powdered mashed potato base (6 percent cheaper), egg-based spaetzle (5 percent cheaper), or rice (4 percent cheaper)?

And those are nothing compared to the biggest price cuts (see table 2). Prix Garantie mustard from Coop is now 24 percent cheaper than it was three years ago. I don’t know whether these products have gotten cheaper because of improved production processes, recipe changes, or profit margin slashes to compete with budget stores – but being able to enjoy my favorite cookies for 45 centimes less is a positive in my book.

Table 2: The ten biggest price cuts in my shopping cart

But not all of these price reductions are really worth celebrating. For example, back in 2019 Coop’s Prix Garantie elbow macaroni were pretty expensive compared to similar noodles from other brands – probably because they were egg-based. Now the Prix Garantie macaroni are just regular durum wheat, and cost about the same as pasta products from other brands which used to be cheaper.

The growing competition in the meat-substitute market is likely to thank for the lower prices in that product sector. A few years ago, at many Migros supermarkets, Cornatur was one of the few brands of meat alternatives available. Now, the selection is teeming with products from numerous competitors – from Beyond Meat to Planted Chicken.

Brand-name products have more stable prices

How about the products which cost exactly as much as they did three years ago? These span the full scope of supermarket shelves, ranging from grated cheese to frozen french fries to paprika chips. It is interesting to see that the prices of brand-name products are, in many cases, more stable than those of retailers’ own budget lines. For example, dozen-packs of Duplo chocolates from Ferrero, Gazi halloumi cheese, and Ramseier cider all still have the exact same price tags as they did nearly three years ago. That pattern reaffirms my assumption that the prices of budget products are more sensitive to inflation.

But the stable-price factor does not compensate for the fact that brand-name goods are generally much more expensive. If, for example, you are just as happy drinking Coop’s no-name apple juice as Ramseier apple juice, you will still get off 20 centimes cheaper even with Coop’s new, higher price.

Saving requires caution

The most important message of this price comparison: If you regularly buy the same products and do not possess a mega brain, taking notes of prices is worth it. Price increases often happen incrementally and are easy to miss, but after a couple of years you could easily be paying 50 percent more for your go-to grocery items. These changes are more noticeable for people who look at prices than for those who already spend a lot on groceries.

But I’m going to wind up my blog by focusing on the good news. Just because inflation rates are high, that does not mean that everything is getting more expensive. If you keep your eyes peeled and take notes, you will always find opportunities to save.

More on this topic:
How to save money on groceries in Switzerland
How to protect yourself from inflation
Online grocery shopping in Switzerland: A guide