The cash slip for an average family can increase by several thousand kroner from 1 July. – We are facing a tighter economic autumn, warns economist.
– There is no doubt that there will be price increases, noticeable price increases, says director of business policy and government contact in Norgesgruppen, Bård Gultvedt.
Norgesgruppen has retail chains such as Kiwi and Meny.
– We have experienced that the suppliers have come to us and asked for abnormally high price increases, and then we have negotiated, says Gultvedt.
It will not be clear until Friday how much prices will rise, but several economists expect them to rise even more than this winter.
At that time, food prices rarely rose much – by 4.5 per cent, according to figures from Statistics Norway (SSB).
The reason for the price increase is, among other things, that many of the foods we import have increased in price, in addition to the fact that it has become more expensive to produce food as a result of increased fertilizer, fuel and electricity prices.
– It is not good that there will be such significant price increases, so we can hope that costs go down again, Gultvedt points out.
The food budget can increase by NOK 7,300
– Suppliers have had to raise their prices very much, it is something that ultimately ends up with us consumers, says savings and consumer economist Cecilie Tvetenstrand in Storebrand.
With the increase so far this year, an average family with two adults and two children has had to spend NOK 7,000 more on food costs.
If food prices increase by another 5 percent tomorrow, it will give a new increase of about 7,300 kroner. In total, this gives an increase of NOK 14,300 in food costs this year, Tvetenstrand points out.
– Many people have to think even more through their food purchases, she says.
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The brand giant Orkla has already announced even more expensive food this summer.
– We are facing the most serious situation I have been in during my 31 years in the Norwegian food industry, says Executive Vice President Håkon Mageli.
He points to a markedly higher raw material price and a sharp increase in energy costs. The big concern in the long run, says Mageli, is the fertilizer prices.
– For the industry, it is crucial to obtain raw materials and ingredients so that we can maintain the ability to deliver. That work has been at the forefront since the invasion at the end of February, says Mageli.
– Normally, these price changes are of a technical and far less complicated nature. This time it is dark clouds that threaten Europe, he says.
Christian Anton Smedshaug in Agri Analyze believes that the price of some products will increase by 1 to 3 percent, while others will rise by more than 10 percent.
– According to an overall assessment, the average will be closer to five, than ten percent, he says and points out meat and eggs that last with a high price increase, as the meat giant Nortura has announced.
Advise people to prepare
At the beginning of June, YouGov investigated how worried people are about their finances on behalf of Storebrand.
It shows that more than 1.4 million Norwegians are worried about their own finances as a result of increased prices.
1.8 million are worried that food prices will rise so much that they will have to change their eating habits.
To prepare for increased expenses, consumer economist Cecilie Tvetenstrand advises people to plan their shopping trips better, be more aware of price per kilo and liter, resist impulse purchases and shop less at a time to prevent food waste.
– You are facing a tighter economic autumn now than you are used to. The earlier we start with better financial habits, the better it will be for the wallet this fall.
PSSST: Are you worried about your finances as a result of rising prices? There are a number of steps you can and should take to secure your finances. Les Hallgeir Kvadsheim’s guide here.