Food Prices Expected to Decrease

More than half of the companies selling food, beverages, and tobacco products expect to lower prices in the next three months, according to Denmark’s Statistics. In January, 55% anticipated declining prices, a 4% increase from December, while 42% predicted stable prices, and only 3% expected rises. Food prices have already dropped by 5% since summer, a relief for household budgets, notes Brian Friis Helmer from Arbejdernes Landsbank. He suggests these anticipated drops may be due to reduced company costs, highlighting a sixth consecutive monthly fall in producer prices for food manufacturing in December. Furthermore, global food prices have decreased by 10% in 2023 and 26% since the peak in spring 2022. Most companies have been anticipating price reductions since July, in stark contrast to expectations of price hikes throughout 2022 and early 2023, peaking in April after Russia’s invasion of Ukraine.