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PTT: Finland sees modest drop in food prices

Prices are coming down slightly for some grocery items.

A grocery basket filled with different food items.
At the end of last year food in Finland cost about 20 percent more than a few years ago. Image: Janne Körkkö / Yle
  • Yle News
  • STT

Your shopping basket is becoming less costly, but grocery prices are still elevated compared to a few years ago.

Food prices are set to drop two percent this year, according to a forecast from Pellervo economic research PTT on Tuesday.

The forecast also suggests that the drop in prices will continue into next year.

Decreasing costs and intensified competition are the reasons behind the fall in retail prices, PTT noted.

Finland's food markets are settling after the shocks of recent years, but at the same time consumers are becoming increasingly price conscious.

While consumers' real incomes are rising, it remains uncertain whether households will opt to save or spend.

At the end of last year, food in Finland cost about 20 percent more than a few years ago. At the same time, studies showed households were buying lower volumes of food than before, with consumers switching to cheaper products, such as in-house brands.

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