Food Prices Drop Significantly for the First Time in Two Years

Food prices turned downward in June, falling by 0.2% compared to May, according to a report from Matpriskollen. This is the largest decrease since April 2023.

"There are usually some bad surprises, but not this time," says Ulf Mazur from Matpriskollen.

Coffee, fruits, and berries contributed to the average drop in food prices in June compared to May. Vegetable prices are also down 0.1% compared to a year ago. The price decline follows several months of minor price increases.

"I think we can expect fairly stable prices for a while now," says Ulf Mazur, CEO and founder of Matpriskollen.

Despite the decline in June compared to May, food prices are 2.5% higher than a year ago. Ulf Mazur says that the continued focus on food prices helps keep them down.

"Consumers are still aware, which puts pressure on the chains."

Strong Krona

The price of coffee has dropped by about 3 to 15 kronor per package in the past month, the report shows. Better harvests after raw material prices hit new records contribute to the decline. The strong Swedish krona also makes it cheaper.

"It matters for a product like coffee, which is traded in dollars. It's mainly against the dollar that the krona has become much stronger."

However, while the Swedish krona has surged against the dollar, it has only strengthened marginally against the euro. Food imports are primarily traded in euros.

"One should be pleased that it hasn't gone the other way and that the krona is actually strong, given that about half is imported," says Ulf Mazur, adding:

"Just having a stronger krona helps hold back price increases."

Meat Prices Rise

In contrast, meat prices continue to rise in June. The price of beef, in particular, is increasing due to a shortage of the product.

"There are long-term problems because there are too few slaughter animals."

One of several reasons for the shortage of slaughter animals is the high price of dairy products.

"Farmers keep cows longer for milking instead of sending them to slaughter because they get such good pay for the milk now."