The price of food only shows normal inflation, further increases are promised during the year – “More euros are now needed in the value chain”

Food prices will rise broadly this year, food experts estimate at the Market Market of the Week.

“Now prices are only showing normal inflation coming from last summer or early autumn. The development of the end of autumn or the beginning of the year is not yet visible in the store, ”says Food Industry Association managing director Mikko Käkelä.

In February, inflation in food and non-alcoholic beverages was 4.6 per cent. Natural Resources Center research manager Hanna-Maija Karikallio notes that price increases have so far targeted certain raw materials, such as poorly harvested coffee or energy-intensive vegetables. He anticipates that the increases will expand to more product groups.

According to the forecast of the Natural Resources Center, the price of food will rise by 5-10 percent this year. Karikallio estimates that the price pressures caused by the war in Ukraine will be visible to consumers next summer.

However, in terms of the final meal, trade plays a significant role. Food Market Commissioner Olli Wikberg believes that Finland’s three major retail chains, the S Group, Kesko and Lidl, will make price increases in different ways and with different intensities.

The jury agrees that, in the end, the current situation does not benefit any actor in the food chain. Käkelä says that primary production is suffering from the profitability crisis and the industrial cost crisis. As a result, he sees the need to make food more expensive.

“More euros are now needed for the entire food value chain.”

See all Marketplace broadcasts here.

By Editor

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