Chocolate, coffee and meat top the list of goods that are seeing monthly price increases, and there is no hope of a price drop anytime soon, according to an article published on TV2 today.
According to the Danish news site TV2, food prices in Denmark continue their steady rise with no real indication of a decrease in the near future. New data from Statistics Denmark (Danmarks Statistik) shows that a third of food retailers expect price increases in the coming period, while none plan to lower prices, the source reports.
Brian Friis Helmer, an economist at Arbejdernes Landsbank, stated: “We haven’t seen such a large proportion of companies expecting price increases for more than two years, and this could be a worrying sign of an upcoming price hike.”
According to statistics, food prices have risen by 4% compared to last year, and by 27% compared to the past four years, a rate that far exceeds the general inflation rate.
Monthly increase in the prices of some goods
Despite a slight decrease in the prices of butter and beverages such as soda, beer and spirits between March and April, other products continue to rise monthly, most notably chocolate, coffee and meat.
According to what TV2 quoted from a number of entities working in the food sector, these three commodities in particular constitute an increasing source of pressure on consumers as a result of the continuous rise in their prices.
Cathrina Dybdahl, communications manager at online food retailer Nemlig.com, said they are seeing “significant increases” in the prices of some goods, particularly meat, noting that purchase prices are steadily rising for a variety of products, including bread, coffee, chocolate, potato chips, and household items.
Retail chains are reacting to the pressures
At Salling Group, which owns the Netto, Føtex and Bilka stores, several notices were received from suppliers about anticipated price increases, prompting the company to make decisions to raise prices on some products.
New burden: packaging costs
“As a result of higher supplier prices, we cannot guarantee that some prices will remain the same, particularly for chocolate, coffee and meat, but we are doing everything we can to keep prices as low as possible,” explained chain spokesman Christopher Green in an email statement to TV2.”
With the arrival of autumn, food producers in Denmark will face a new financial burden related to the collection, sorting, and recycling of packaging waste. Leif Nielsen, CEO of the Association of Brand Suppliers, stated that this burden will negatively impact the prices of all goods in stores, given that most products are packaged in packaging materials.
“The costs are passed from taxpayers and municipalities to producers and consumers. We don’t know exactly how this will affect prices, but it will affect almost all products,” Nielsen said, according to the source.
