During December, food prices rose a further 0.1 percent in Sweden, according to new statistics from the Matpriskollen. The rate of increases has therefore stopped, but when last year is summed up, another year with sharp price increases for food is visible.
In 2023, food prices increased by an average of 5.2 percent, according to Matpriskollen, which followed the development of over 30,000 comparable goods that Swedes most often put in the till.
– But it is not possible to compare the pace with 2022, when the war and the effects of the pandemic hit in full, says Ulf Mazur.
In the record year 2022, the same figure was a whopping 15.4 percent. During the first months of last year, new highs were made in price increases until the spring. Then it suddenly came to a screeching halt.
Goods that have become cheaper during the year
Goods that have become cheaper during the year
Press after ministerial meeting
The reasons are many, but it is impossible to close our eyes to the fact that it happened at the same time that Finance Minister Elisabeth Svantesson (M) called the big Swedish food giants, states Ulf Mazur.
– I think it had an impact, but the fact that it received such attention in the media and became a big deal had an even greater impact. There was a lot of pressure, so sure as hell it had an effect.
Last year’s rocket on the shelf was olive oil, which shot up a whopping 30 percent in price compared to 2022. The explanation was a widespread drought in Spain. Another commodity was the juice, which became more expensive due to destroyed orange groves in Brazil and Florida.
– We will have to get used to that. There will be price changes on products when things happen, says Ulf Mazur.
Goods that have become more expensive during the year
Goods that have become more expensive during the year
Expectations of reductions
Going forward, there are at the same time many things that point in the right direction. The fact that the price of diesel is going down, raw material prices are falling and that the Swedish krona has strengthened means that many products should be able to be reduced in price, says Ulf Mazur. Likewise if interest rates start to fall back, which many farmers are looking forward to.
– Consumers expect that there will be reductions when things start to go in the right direction, he says.
But that it will become a reality during the year is, despite that, far from obvious.
Many producers need further increases. According to Ulf Mazor, the chains also likely want to cover other overheads, such as increased personnel costs and more expensive rents, which have reduced their margins.
– Therefore, there is a risk that it will not be seen in the end. It is easier to raise the price of an item than to lower it.