Warning: Food prices could rise again
Translated from Swedish, summarized and contextualized by DistantNews.
At a glance
- Swedish food manufacturers are warning that prices may need to rise again due to increasing costs for transport and packaging.
- These rising costs are linked to the energy crisis in the wider world.
- The industry is facing tough negotiations with grocery chains amid public and political pressure to keep food prices low.
Food prices in Sweden may be on the rise again, just as they were beginning to stabilize after a previous tax reduction. Manufacturers are flagging increased costs for transport and packaging, which account for about a fifth of their total expenses. These pressures stem from the ongoing energy crisis affecting global markets. Carl Eckerdal, chief economist at the industry organization Livsmedelsfรถretagen, indicated that price hikes are likely, though specific percentages are not yet determined. He acknowledged the difficult position manufacturers are in, facing pressure from both the public and politicians to avoid further price increases. Eckerdal stated that negotiations between suppliers and grocery chains will be challenging, as these chains must manage consumer expectations for lower prices. He defended the industry's position, emphasizing that manufacturers cannot operate without profit and that the current situation is a reflection of external factors, not opportunistic price gouging. Eckerdal pointed to calculations by government agencies that attribute past food price increases largely to external causes, suggesting the Swedish food industry is generally under economic strain.
Yes, one must assume so. But I don't have any percentages.
Originally published by Dagens Nyheter in Swedish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.