Food price inflation and the transmission of prices and costs along the food chain

The year 2022 experienced high price inflation, not least for food. The price increases have likely several causes. Higher energy prices have for instance led to cost increases in agriculture as well as in later stages which ultimately result in higher prices for the consumer. Concern has also been raised that companies have increased their margins in parallel with the cost increases.

The object of this project is to illustrate and analyse the price increases in the food chain to investigate whether price competition has possibly increased or decreased. The study can therefore serve as a guide to whether the increase of prices and costs have tilted the balance of power in the food chain. Detailed data from stores is used to examine the transmission of prices and costs along the food chain from agriculture to consumer. The focus is meat and milk, two products where the price increases have been substantial, and which are important both for domestic agriculture and industry.

The project is financed by the Swedish Competition Authority and will be completed at the end of 2023.

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