Food prices up by 10-20 percent since January Skip to content

Food prices up by 10-20 percent since January

Budget supermarkets in Iceland have raised food prices considerably since January, in many instances by 10-20 percent. At the same time the price index for comestibles has gone up by 6.4 percent. This is revealed in a comparison study conducted by the Icelandic Federation of Labour (IFL) and reported by Morgunbladid online.

In a press release, the IFL states that there has been a notable increase in the price of dairy products. The price for bread and grains has also gone up, whereas the price of fruit and vegetables tends to rise and fall according to the season. The IFL speculates further that the cause of these considerable price increases is that budget supermarkets are trying to make up for a loss they incurred last year when there was a major price war between chains. Also, it is pointed out that the prices cannot be explained exclusively through the falling rate of the Icelandic krona, since some of the comestibles that have gone up in price are produced domestically.

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