Why Have Food Prices Gone Up Lately

[joulupukki]

I've read a couple of stories about food going up in various countries and noticed the same thing has happened in Finland. Does anyone know the reason for the hike in prices?
Thanks.

[Rosamunda]

The govt increased the tax on diesel fuel. There is a huge knock-on effect on everything we buy. Especially food which is delivered by truck.

The increases will continue over the next few weeks as the tax hike trickles through.


and BTW it is winter... food is always more expensive in winter.


Asian consumption of milk is pushing up demand (and therefore price) of dairy products. Govt subsidies on milk have discontinued.

Grain prices are increasing because there is increased demand for grain (eg for ethanol production)

[Andrew_S]

Grain prices are increasing because there is increased demand for grain (eg for ethanol production)

Also increased consumption of meat in Asia as people become more affluent. Demand increases but supply from harvests is so-so, so prices go up. World stocks of grain have steadily been decreasing over several years as harvests can't keep up with consumption.

Oil prices are near record highs and a lot of the recent increases have not yet been passed on to the forecourts, but as penelope mentioned Finnish drivers are priveleged to pay an extra 5 cents tax anyway.

Monetary inflation has been high in all the main currencies (this ultimately is where inflation comes from) but didn't go into basics like food and stuff. Now it is going there.This is going to be an ongoing thing so expect generally higher inflation in the years to come. IMO harder economic times are on the way in general, so tighten your belts folks.