According to the forecast of the Pellervo Economic Research Group, rising production costs and a poor harvest year will increase food prices by 1.8 percent.
Food prices will rise significantly in Finland next year, says the Pellervo Economic Research (PTT) research institute.
"The rise in food prices in Finland will be moderate in 2021, about 0.3 per cent, but will start to rise explosively towards the end of the year." Sari Forsman-Hugg, PTT ‘s director of research said in a statement.
Prices are expected to rise by 1.8 per cent, which is more than the projected rise in overall consumer prices.
PTT found that the poor harvest and the increase in production costs were behind the expected growth. This is due in particular to rising costs for fertilizers, feeds and construction, the group said.
"Farmers’ incomes will fall dramatically this year, by as much as one-fifth, and next year the decline is forecast to continue by another 8%," Forsman-Hugg said.
However, the group’s report found that rising food prices will be offset by wage increases.
Source: The Nordic Page