“It has never been more expensive to be Danish,” TV2 began its article published a short while ago about rising prices of goods in grocery stores or supermarkets. One expert says that Danes can prepare themselves for the fact that high prices will continue (TV2). Here are the details.
According to the source, new figures released by Statistics Denmark show that food prices in September were so high that they reached exactly the same level as in July, a record high. Read the list of the ten food items that saw the most significant price increases at the end of the article..
Thus, prices have risen on average by 22% since January 2022. The use of “on average” means that there are goods that have risen by less than that percentage, while there are goods that have already risen by more than 22%.
“To explain the rise in food prices, we have to look back two years, when inflation started to rise,” said economist Brian Friis-Hilmer of Arbejdernes Landsbank in a statement to TV2. He pointed to the surge in demand during the coronavirus pandemic and the soaring energy prices resulting from the war in Ukraine as two of the biggest reasons behind the price explosion in recent years.
But although inflation is at a low level and has remained stable at around 2% for more than a year, Danes should not expect prices to fall again at the moment.
Why aren't prices decreasing despite previous expectations to the contrary?
Although lower inflation doesn't necessarily mean cheaper goods on the shelves, it's difficult to understand why food remains so expensive, says Brian Friese-Hilmer. "I can understand that as a consumer, you're surprised that prices haven't gone down," he tells the source. He notes that a significant portion of food retailers repeatedly announced during 2023 and 2024 that they expected prices to fall, but this simply didn't materialize. In July 2023, 54% of companies responded that they anticipated price decreases over the next three months, and by January 2024, that number remained virtually unchanged. Despite this, prices continued to rise. Part of the explanation, however, lies in food production, explains Friese-Hilmer: "You have to remember that food production has also become more expensive. Higher interest rates, increased cost pressures, and other factors, such as rising private-sector wages, have driven up costs.".
Expectations of continued price increases
Brian Friis-Hilmer explains that Danish consumers can start to get used to higher prices: “I don’t expect prices to go down again. Although it’s happening at a slower pace, price increases are likely to continue,” he says.
High temperatures and harsh weather
However, war and epidemics are not solely responsible for the record-high prices. Professor Jürgen E. Olsen of the Department of Ecological Agriculture at Aarhus University points to one thing in particular that has had a significant impact on the fact that the prices of a number of food items have risen: “In recent years, we have experienced higher temperatures and more extreme weather worldwide. Climate change affects the production of a number of foods and can help explain why some of them are more expensive,” Jürgen E. Olsen told the source.
olive oil and chocolate
For example, this has particularly affected olive oil, a food commodity whose prices have risen considerably since January 2022. Olive producers usually irrigate their fields, but prolonged periods without rainfall have emptied water reservoirs, and this has occurred beyond the harvest period. In addition, high temperatures have affected coffee farmers, and large amounts of rain have caused cocoa plants to rot, so chocolate has become more expensive, as Jürgen explained to the source.
The following are the ten products whose prices increased the most, according to the source:
- olive oil
- sugar
- chocolate
- Dried, processed, or frozen vegetables
- eggs
- cheeses
- Flour and grains such as oats and the like
- potatoes
- rice
- baby food
