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Food Costs Rising at Far Beyond European Average

The cost of food in Finland has risen far more in the past year than the European average. Groceries are nearly ten percent more expensive than a year ago, while the European average has risen only by 6.4 percent.

Only a year ago consumers in Finland felt relief that food costs were rising far slower than in the rest of Europe. Now costs have leapt by 9.5 percent.

The rising price tag on dairy and meat products has been the biggest factor in the overall rise in food costs. For example, the cost of Edam cheese has increased by around 20 percent and the cost of fat-free milk by 25 percent.

A joint of beef is now a fifth more expensive, and wheat flour is more than 40 percent more expensive than a year ago.

Prices Driving Inflation Statistics Finland development director Ilkka Lehtinen says that the rising cost of food is responsible for a third of the inflation experienced in Finland.

"For a long time the effect of food on inflation was minimal, almost nonexistent, but now the situation is far different than it has been in many years," says Lehtinen.

But experts cannot agree on exactly why the cost of food has risen so quickly in the past year. One factor in certainly the rising cost of fuel, which is used in abundance to produce any food in such a relatively cold climate. But this alone doesn't account for the increases.

Some experts believe that retailers have upped prices to increase their own profit margin, other blame the industry producers. Taxation on food is also higher in Finland than the European average.

Sources: YLE