For several years in the early 1990s, Swedish consumers spent around 13.5 percent of their disposable income on food and non-alcoholic beverages. Since then, the share has fluctuated between 11.1 percent and a high of 12.8 percent in 2020. For 2024, the share lands at 12.7 percent.
Private economist Anders Stenkrona does not think it's strange that consumers are now starting to react to food prices, despite the fact that the share of income spent on food has not increased compared to how it has looked historically.
Few people think about how it was in the 90s, but you think about what was recently. And compared to recently, food prices have risen 30 percent and you notice that.
Loud Protests
He reminds us that there have also been loud protests in recent years regarding gasoline prices when they skyrocketed and electricity prices and interest rates when they did the same.
Both gasoline, interest rates, and electricity have fallen back, but food is still there. Therefore, it becomes a frustrating, relatively high, expense item compared to what you were used to a couple of years ago, says Anders Stenkrona.
Political Uncertainty
There is currently no indication that food prices will turn downward in the near future.
I don't think we can be so sure about that, because it stems from somewhere that there are great political uncertainties and high raw material prices internationally.
The Swedish krona has strengthened recently and that may possibly lead to slightly lower prices.
A stronger krona benefits imports, and much of our food is imported, says Anders Stenkrona.
