Strong jump in food prices from 1 February, increasing up to 10 percent – news Norway – Overview of news from various parts of the country

These days, the annual negotiations between the suppliers to the grocery trade and the chains are underway. The result of this tug-of-war will come in the next price window – 1 February 2023. Sources in the retail chains tell news that the price increases will be up to 10 per cent, but specify that the result is not yet clear. The chains will pass the price increase on to customers throughout the winter and spring. This comes on top of an annual increase in food prices. From November 2021 to November 2022, prices increased by 12.7 per cent, according to Statistics Norway’s consumer price index. – It’s sad. I think a lot of people have problems. It’s one thing for us who are established, but there are many who struggle financially for whom I think this will have major consequences, says Anne Sælebakke, whom news meets at Coop Extra in Majorstua. Anne Sælebakke feels sorry for those who want to feel the price increases on their bodies. Photo: Tom Balgaard / news The price increases will be sharp Unfortunately, consumers will face sharp price increases from 1 February, Nortura confirms to news. The company is the market leader in meat and eggs. “Increased electricity expenses this autumn alone amount to twice as much as the profit was last year,” says communications manager Kjell Rakkenes. Communications manager at Nortura Kjell Rakkenes says that the costs must be spread over several people. Photo: Ronja Elise Bredholt Schrøder / news The company receives no electricity support from the authorities. The costs must therefore be distributed between farmers, industry, trade and consumers, he explains. – That means that everyone has to do their part, and unfortunately that means that the prices for customers have to increase, says Rakkenes. – Inexplicably Ivar Pettersen, who is a researcher on food economics at Nibio, completely disagrees that the Norwegian grocery industry needs to raise prices as much as they do. Ivar Pettersen, researcher at Nibio. Photo: news In a recent report, Pettersen concludes that the price increase for consumers on food products in the third quarter of 2022 is higher than can be explained by normal driving forces for the price development of food products. He believes it is unreasonable that consumers should be penalized when food producers have miscalculated electricity costs. – The price increase is inexplicable, says Pettersen. Backlog of cost increases Already at the end of October, Orkla’s CEO Nils Selte was out and “regretted” that there will be further price increases in 2023. Orkla’s CEO Nils K. Selte apologizes to consumers for the price increases. Photo: Thomas Brun / NTB – We have a backlog on our purchasing costs. Inflation hits a broad basis throughout the value chain, and cost increases will continue next year, Selte said in October. The grocery chains are careful not to publicly comment on the price negotiations, but sources in all three chains are clear that there will be “fresh” price increases from 1 February. REMA CEO Ole Robert Reitan told news at the end of October that the price increases for food will continue as it happens in many other industries due to inflation. Rema CEO Ole Robert Reitan blames inflation. Photo: Sigurd Steinum / news



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