The last three years have seen food prices rise more than inflation. And in January, rising food prices were a reason for the unexpected increase in inflation.
Carl Eckerdal, chief economist at the industry organization Livsmedelsföretagen, does not see any signs that food prices will decrease in the future.
It's better to prepare both companies and Swedish consumers for the fact that there are many indications that things are going in the wrong direction on the food front, unfortunately, he says.
Nothing to Hold On To
A survey sent out by the industry organization to Sweden's food producers shows that most of them expect continued cost increases in 2025.
There are many external factors that suggest this. With geopolitical tensions, threats of trade wars, extreme weather, and a weak Swedish currency, there are not many trends to hold on to as a producer. None, really, he says.
If food prices are to go down, producers' costs need to decrease.
We don't see that happening, says Carl Eckerdal.
He does not believe, however, that food prices will skyrocket much more than inflation in the short term. In ten to fifteen years, however, Eckerdal believes that climate change will lead to more expensive food.
Preparing for climate change in the agricultural and food sector will cost an enormous amount of money, he says.
Certain products have already increased in price due to extreme weather, says Eckerdal, mentioning coffee, chocolate, oranges, and olive oil.
According to Carl Eckerdal, food producers have had to pull a tough load as energy and input prices have risen in recent years.
Prices and costs are mainly going in one direction, and that is up. Once they are established, it's hard to see broad cost reductions, he says.
