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PTT: Food prices to grow until next year

The economic research institute expects the price of meat, dairy products and eggs will increase by 20 percent.

The institute's most recent forecast anticipates that food prices will grow by an average of 11 percent this year. Image: Aalto Puutio / Yle

The price of food in Finland will continue to rise, according to Pellervo Economic Research (PTT), a non-profit, independent research institute.

Last spring, PTT forecast that this year's food prices might grow at the fastest pace since Finland joined the EU in 1995.

The institute's most recent forecast similarly anticipates that food prices will grow by an average of 11 percent this year.

However, by the end of the year, prices of meat, dairy products and cheese, as well as eggs are expected to rise by up to 20 percent. The costs for cereals, bread and vegetables are also expected to rise in the coming months and into the beginning of next year, according to PTT's senior agricultural economist, Päivi Kujala.

"This means that by the end of the year, we will see big price increases that ocurred within a short period of time," Kujala told Yle.

The institute also expects food prices to remain high for at least the next year, but that prices will still be relatively high despite an anticipated decrease towards the end of next year.

PTT also noted that fertiliser and energy costs will remain relatively high, despite an anticipated decrease in price spikes, according to another of the institute's agricultural economists, Pekka Kinnunen.

"The biggest impacts will be felt particularly by greenhouse and dairy farmers. Increases in costs can weaken domestic greenhouse production in the winter," Kinnunensaid.

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