On Wednesday, Coop Extra and Rema 1000 raised prices significantly on a number of goods. This was shown by news’s own price check. But already the next day, the two store chains choose to lower the prices again, according to press releases from Rema 1000 and Coop Extra. On 1 February, the prices of groceries increased by an average of 4.8 per cent. On Thursday, Industry Minister Jan Christian Vestre (Ap) was called to the Storting to answer questions about what the government is doing to intervene. – When too much power is concentrated in too few hands, we must make sure to spread and distribute the power before it is too late, said the Liberal Party’s Alfred Bjørlo from the Speaker of the Storting. He pointed to the weak competition in Norwegian groceries. It mainly consists of three major players: Norgesgruppen, Rema 1000 and Coop. – Now most people have had enough. If we are to give people more to root for in a demanding time, then we must have healthier and more competition in the grocery market. – Power breeds power. And more power for a few means less power for everyone else, Bjørlo asserted. Vestre: – Has a high priority – It is not the authorities who decide the prices. And the authorities cannot adopt lower inflation either, replied Minister for Business Jan Christian Vestre (Ap) from the podium. – But we can implement an economic policy that contributes to lower cost growth. Vestre assured the Storting that the government is in the process of following up on a number of measures to improve the situation in the grocery market. Industry Minister Jan Christian Vestre (Ap) assured the Storting that the government now prioritizes improving the competitive situation in the grocery market. Photo: Annika Byrde / NTB But Bjørlo thinks the work is going too slowly. He pointed out that it took over half a year from the time the Storting asked for more studies, until the government actually announced the assignments. And then with deadlines until next summer. – This means that it can take 1.5 to 2 years before we actually get new policies that benefit people, he emphasized. But Vestre kicked back. He asked Bjørlo to be a little humble as his own party was in government before Vestre took over. – Then he also knows some of the complexity of this market. – There is no “quick fix”, but I feel confident that the sum of us now putting in a historically large number of measures to improve this competitive situation will give us an effect, Vestre stated. Proposes breaking up ownership Deputy head of Rødt Marie Sneve Martinussen emphasized that it is those with the worst advice who are hit hardest when prices rise. – We know that especially in the last year, many have used the savings knife so heavily that there is no more to cut when prices are now rising. Therefore, it is also an existential question for many. Martinussen believes it is necessary to look at ownership restrictions in the grocery industry. Deputy head of Rødt Marie Sneve Martinussen will look at ownership restrictions in the grocery industry. Photo: Stian Lysberg Solum / NTB – Does it ever come to a point where there is simply too much concentration? Where is the border? she asked. MDG’s Rasmus Hansson also called for a closer look at ownership. – So we have to realize that incremental changes have been tried for a long time, without having the big effect. – The question then is whether we have to look a little bigger at the picture. Namely, go straight ahead and break up the ownership and size of the major players in the grocery industry, he suggested. MDG’s Rasmus Hansson believes it may be necessary to take a closer look at the ownership of the major players in the grocery industry. Photo: Annika Byrde / NTB Vestre pointed out that the government is now following up on ten measures to ensure a better selection and lower prices in grocery stores. – When we have put a couple of years behind us, I am sure that we can say that we have come a long way in improving competition in the grocery market. This is the government’s 10-point plan: The government will find out where the money goes. Investigate price signaling. Investigate how the prices are created. Prohibition of price discrimination. Scope and effects of own brands. Scope and effects of the same actor sitting around the same table. Prohibition on preventing competitors from using shop premises. Give the Norwegian Competition Authority greater muscle. Lower the threshold for when an actor is market dominant. More money for the Norwegian Food Safety Authority. Source: Ministry of Trade, Industry and Fisheries Up to 10 per cent more expensive food Rising food prices have received a lot of attention recently. And on Wednesday, the prices of a number of goods were raised further. This was revealed in news’s own price check. The mapping showed, among other things, that Extra had increased the price of toilet paper by as much as 40 per cent. However, Kiwi chose not to set the prices. It therefore did not take long before both Rema 1000 and Coop Extra announced that they will lower the prices again, according to press releases from the store chains. – We have adjusted the prices back down to what they were before 1 February, says director of communications at Coop Norge, Bjørn Takle Friis, to VG. Prices in grocery stores are usually set on 1 July and 1 February. In the industry, these months are called price windows. The suppliers, who sell food for daily use, and the food chains have agreed that increased prices will be charged during these periods. This practice is one of the conditions that the government will now look into. On Wednesday 1 February, several of the grocery chains raised their prices further, news’s own survey showed. Photo: Terje Pedersen / NTB Friis, told news yesterday that they have received enormous price increases from their suppliers. – We have taken out part of it, but we have not taken out the cost increase that we ourselves have had. Purchasing director Line Aarnes in Rema 1000 said yesterday that they do not increase prices more than they have to. – When the suppliers increase the price to us, then unfortunately the price in the store also increases. Increased food prices The comparison of food prices and the wage trend says something about whether you get more, less or the same amount for your money. When the development of food prices is higher than the development of wages, it means that food has become more expensive. Both figures are averages for the specified period. Read more about sources and reservations here. How much food prices have increased in the last year, compared to wage development Food Dec 2021 – Dec 2022 Wage development Forecast for 2022
ttn-69
