Food prices drop for second month in row

Dairy prices fell in May. Archive image.
Dairy prices fell in May. Archive image.

Food prices continued to decline in May, suggesting a potential break in the upward trend, reports Ulf Mazur, spokesperson for Matpriskollen. Mazur believes the current decline is happening at a remarkable pace.

Ekonomi 5 juni 2023 10:30

According to Matpriskollen's statistics, food prices experienced a 0.1 percent decrease in May compared to April, marking two consecutive months of decline. Mazur affirms:

– Now we have confirmation that April's reduction was not just a temporary setback; it represents a shift in the pace of price increases.

Mazur acknowledges the immense pressure on major food retailers to lower prices, primarily driven by the growing popularity of discount stores. He notes:

– This trend is now evident in the statistics.

– The chains and stores are making every effort to prevent price increases, Mazur states. 

– They are exerting significant pressure on suppliers, effectively halting price increases. Only in exceptional cases are price hikes permitted.

Although there has been a trend break in recent months, food products remain considerably more expensive compared to a year ago. Matpriskollen's data reveals a 12.8 percent year-on-year increase in food prices for May, representing a significant decline from the peak of 17.8 percent observed in February.

Mazur emphasizes: 

– There is a substantial difference in the rate of price increase. The current rapid decline is primarily due to the high comparative figures from the previous year.

The price of ice cream saw the most significant increase in May, rising by 1 percent compared to April. Over the span of one year, ice cream prices have surged by 15.4 percent.

On the other hand, the price of fruit and berries experienced a 1.9 percent decrease compared to April, resulting in a 3.3 percent year-on-year price increase. The significant drop in prices can be attributed to the abundance of seasonal berries and fruits.

Dairy products also saw a decrease in price by 0.8 percent in May, but they have risen by 14.2 percent over the past year.

Matpriskollen's food price index is based on the regular prices of 43,000 items across major chains. The company provides statistics for both overall daily goods and exclusively for food-related products, excluding items such as pet food and hygiene products.

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