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Home BUSINESSFood prices likely to go up next year
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Wed, 01 Apr, 2015 12:07:22 AM
FTimes-STT Report, April 1
 
Photo – Lehtikuva.
Food prices will this year remain lower than last year, according to the estimation of Pellervo Economic Research Institute (PTT).
 
The food prices, however, will level off towards the end of the year, and again begin to rise slightly next year.
 
"An individual consumer shopping cart is three percent cheaper this year than last year," PTT agricultural economist Kyösti Arovuori said.
 
The fall in food prices, according to PTT, is due to decrease in production costs.
 
PTT estimates that shops have transferred part of the cost in price reductions, which is reflected in various discount campaigns.
 
S-Group reduced prices in its outlets in January, whereas Kesko dropped its food prices last autumn.
 
The new agreement between food industries and shops were implemented in early February. The food prices had dropped by one percent between January and February.
 
Production costs will drop this year as a result of decrease in energy and feed price. However, PTT expects costs to begin to rise next year.
 
Farmers also are feeling the pinch of decrease in food prices. PTT forecast an 11 percent decline in entrepreneurial income this year. However, the decline is expected to be at 7 percent next year.
 
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