(BFM Bourse) – Love is priceless. But this year, the feast of lovers will have a special flavor. The price of commodities for the most common gifts this holiday has risen by more than 20% over the past two years, according to broker eToro’s Valentine’s Day Index.
Valentine’s Day, which will take place on Tuesday February 14, will be more expensive than in previous years. Inflation will indeed invite itself to the table of this feast celebrating the patron saint of lovers.
To cherish the chosen one of his heart, European consumers will therefore not have to look at the expense. The price of basic products for the most common gifts has increased by 23% over the past two years, more than the headline consumer price inflation in the European Union which comes out at 16.2% , according to the Valentine’s Day index concocted by eToro.
This index* covers Valentine’s Day essentials, such as jewelry, sweets and a meat dinner, based on the prices of gold, silver, cocoa, sugar , beef and chicken. “Inflationary pressures threaten to make romantic celebrations less affordable” is moved by eToro.
“While the Valentine’s Day commodity price increase is less than the 31% increase in broader commodity prices, we can’t say that love doesn’t cost anything,” wants to temper Antoine Fraysse-Soulier, head of market analysis at eToro.
The bill may be bitter for a box of chocolates
With the soaring prices of agricultural raw materials, the addition to the restaurant is likely to be steep. And ruin a beautiful candlelit dinner. According to eToro, the price of beef and poultry increased by 46% and 19% respectively between the end of January 2021 and the end of January 2023.
“A surge which is explained by the rise in production costs, starting with the raw materials and the fuel necessary for cultivation as well as the harvesting of fodder to feed the animals. The entire production chain is also faced with increases in processing and transport costs due to the explosion in energy costs” explains Emmanuel Lechypre on RMC and RMC Story.
“Lovers will feel the full impact of inflation as they celebrate Valentine’s Day, with jewelry, chocolate and restaurant dinners each priced up from previous years” , Antoine Fraysse-Soulier, head of market analysis at eToro.
For people who would still like to offer a gift, falling back on a box of chocolate would unfortunately be a “bad plan” for the broker. These cocoa sweets will also be more expensive in 2023, with the box of chocolate “having not been spared by inflation, with basic products such as cocoa and sugar increasing by 29% on average” adds eToro.
Between January 2021 and January 2023, the price of sugar increased by 40%, rising from 2.76 to 3.86 euros/kg, due to climatic problems in the producing countries but also to a surge in the costs of energy, necessary for refining. Cocoa prices, for their part, rose less sharply (17%).
A silver jewel, to spend the least
Silver jewelry would therefore be the most advantageous gift that the French can choose, the price of silver having only increased by 3% since 2021. On the other hand, for gold it will be necessary to put your hand in your pocket. Consumers should be prepared to pay 13% more for gold jewelry given the rise in the precious metal from $1,526.29 per ounce to $1,729.89 per ounce over two years.
source eToro
“The bad news continues to roll in for French consumers who are already dealing with rising interest rates and rising energy costs. Lovers will feel the full impact of inflation when they celebration of Valentine’s Day, with jewelry, chocolate and dinners at the restaurant, each of which will have an increased price compared to previous years” continues Antoine Fraysse-Soulier.
* The eToro Valentine’s Index is a simple weighted index of spot prices for gold, silver, cocoa, sugar, beef and chicken. Data collected on 01.27.2021 and 01.27.2023, from Refinitiv. Prices were analyzed in US dollars and converted into euros using the closing exchange rate on the date of collection (1.09 dollars).
Sabrina Sadgui – ©2023 BFM Bourse