Food prices soar as inflation impacts consumers across Scandinavia

Food prices continue to rise, significantly impacting consumers globally. For instance, what used to cost about 10 kroner for a kilogram of sugar has now skyrocketed to approximately 15 kroner. Similarly, the cost of a bottle of olive oil has surged from 50 kroner to around 90 kroner. Since January 2022, when inflation began to escalate, food prices have increased by an average of 22 percent, even as energy prices stabilize.

The consumer price index is currently at an all-time high, and many economists predict that prices will not return to pre-inflation levels. Las Olsen, chief economist at Danske Bank, notes that while inflation has eased slightly, food prices continue to rise, albeit at a slower pace.

Recent data reveals frozen fish prices increased by 5.8 percent in just a month. The price hikes stem from various factors, including post-COVID-19 effects and the ongoing war in Ukraine, which has caused energy prices to soar. Subsequent interest rate hikes by central banks have made borrowing costlier for farmers and food producers, ultimately affecting prices for consumers.

Further complicating matters, climate issues such as drought in the Mediterranean have reduced agricultural yields, impacting product availability and prices—particularly for coffee, which is currently experiencing supply shortages.

Despite rising prices, supermarkets do not appear to be profiting excessively from these increases. Many retailers have absorbed cost hikes for the past 2.5 years, but this buffer is diminishing. Economists emphasize that consumers need to adjust their spending habits as high prices are likely to persist, particularly affecting those on fixed incomes who do not see corresponding wage increases.