Editorial|Editorial
When food becomes more expensive, consumers switch to cheaper products. It is more difficult for the poor to compromise on consumption.
Christmas dishes this year, buyers can prepare for a clearly larger sales bill than a year ago. In November, the price of food had risen by as much as 16.5 percent from a year ago. Familiar basic foods, such as flour, butter and eggs, had become more expensive. The rise in prices can also be seen in Christmas hams, which are 15–20 percent more expensive this year than a year ago.
The main reason for the increase in food prices is Russia’s war of aggression in Ukraine. It has increased the price of fertilizers and energy imported from Russia and hindered the export of grain from Ukraine. The increase in agricultural production costs has been passed on to consumers in the price of food.
Questions have been raised about the role of the store in the food chain. Consumers and farmers are tough, but the trade has been able to hold its own better. For example, Kesko has even managed to increase its operating profit percentage in the grocery trade. Trade is helped by the concentration of the industry, which is exceptionally large in Finland compared internationally. Over time, you can hope for help with the situation from the food online store. At the beginning of the year, Norwegian Oda entered the industry in Finland.
Food an increase in price means that prices are looked at more and more closely in the store. Many people have to buy milk and bread, but you can bargain for whole meat, fish and vegetables, for example. Often the cheaper options are also the less healthy options.
Many consumers look for relief from cheap brands or red-label products from chain stores. As people watch prices, the importance of special offers increases. There are special offers in stores, especially around Christmas, when people are attracted by, for example, inexpensive coffee packages.
Well-off consumers can offset part of the price increase by changing their consumption, but it is more difficult for poorer people, because they usually buy the cheapest products. Food also takes a larger part of consumption expenses from low-income people than from the rich, so the price of food is to the greatest extent also a question of fairness.
The editorials are HS’s positions on a current topic. The articles are prepared by HS’s editorial department, and they reflect the journal principle line.
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