Inflation | Food has become more expensive in Sweden even faster than in Finland

in Sweden the price of food has risen faster than in Finland and other northern neighboring countries. In January, food became more expensive in Sweden by almost 20 percent compared to a year ago, says the country’s statistics authority.

At the same time, the price of food in Finland and Denmark rose by about 15 percent. In Norway, food prices fell by an average of 12 percent from a year ago.

According to experts, there is an important reason for the rapid increase in food prices in Sweden.

“Weak Swedish krone. It gives an extra boost to food prices in Sweden compared to other countries,” says Nordea’s chief analyst Torbjörn Isaksson.

A large part of the food sold in Sweden is imported, and the weak krone makes imported goods more expensive than before. You can see it especially clearly with fruits and vegetables.

Still, according to Isaksson, the weak krone also increases the price of food produced in Sweden.

“Although the products are produced and sold in Sweden, the Swedish producer always has the opportunity to sell abroad if the price is better there. That’s why the weak krona also affects food produced in Sweden,” says Isaksson.

Also Economist at the Swedish National Institute of Economic Research Erik Glans believes that the krona is “probably the most important” explanation for differences in the rate of price increases.

Glans mentions that the Swedish krona weakened by about eight percent against the euro in 12 months. According to him, food prices can be expected to rise the more the exchange rate of the krona weakens.

Like the Swedish krona, the Norwegian krona is also weak, but the price of food in Norway has not yet risen rapidly. According to Isaksson of Nordea, it is difficult to make a comparison with Norway, because the food market in Norway is more regulated and “stricter” than in Sweden. According to him, Finland and Denmark are better points of comparison.

“The Swedish krona has weakened a lot against both the euro and the Danish krone,” says Isaksson.