The Icelandic Labor Confederation (ÁSI) has recently carried out a price survey, and it shows that food prices vary by up to 140% across the country.
ÁSI compared the prices of 103 items sold in 15 small grocery stores in rural areas. Fifty-six of the 103 products tested had a price difference ranging between 60–140% between the highest and lowest prices reported on certain products. Twelve items had a difference of more than 140%. This is especially worrying as many of the stores we surveyed are located in isolated locations and are the only viable shopping option for people living in the area.
An example of a significant price difference is, among others a packet of sliced cheese (brauðóstur) worth ISK 1,373, the price per kilogram of which varied by as much as 106% between the highest and the lowest. The price of a box of Cheerios was about 103% higher than the cheapest product. The difference between the highest and the lowest veal price per kilo was also 100%. Butter differed by about 50%, various types of bread 60-70%, coffee pads 80%, and detergents by 156%.
Looking at other categories, the difference between the highest and lowest prices for meat and fish is 80-100%. Approximately 100% more expensive is for canned or dry products, and 80-100% for snacks, carbonated drinks and etc. However, the largest price difference was found between fresh vegetables, which cost 200-300% more on average.
In many stores, the selection of products was very small. The largest selection (94 out of 103 products) was found in Skagafirðingabúð in Skagafjörður in northern Iceland; the smallest (24 out of 103 products) in Versluninn Ásbyrgi in Northeast Iceland.
Small, independent grocery stores are struggling to stay in the black.
To look at the price differences from the point of view of the store owner, journalists spoke with Jón Stefán Ingólfssonwho has been managing the Jónasbúð company in Grenivík, North Iceland for 25 years.
Jón agreed that 140% was a bit too big of a price difference, but said there could be many reasons for this. He added that the study included small, private shops in small towns as well as shops that are part of larger grocery chains. As he explained, retail chains can buy their goods at wholesale prices, which means that they can offer their customers prices lower than the owners of private grocery stores.
Jón Stefán added that he believes it is unlikely that stores with higher prices will try to cheat their customers as most small businesses are constantly struggling to stay positive.
A full table with the results of the price comparison and the stores surveyed can be found here (in Icelandic).
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Source: Yle