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PTT: Grocery bills to grow next year

Prices are expected to rise by 1.8 percent, which is more than the projected rise in overall consumer prices.

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However, the group's report noted that the rise in food prices will be balanced out by wage increases. Image: Henrietta Hassinen / Yle

Rising production costs and a poor harvest year will translate into a 1.8 percent increase in food prices, according to a forecast from the Pellervo Economic Research group.

Food prices in Finland will significantly increase over the course of next year, according to a report from economics research institute Pellervo Economic Research (PTT).

"The rise in food prices in Finland will be moderate in 2021, at about 0.3 percent, but will begin to rise exponentially towards the end of the year," Sari Forsman-Hugg, PTT's research director, said in a statement.

Prices are expected to rise by 1.8 percent, which is more than the projected rise in overall consumer prices.

PTT noted that poor harvests and production cost hikes were behind the anticipated increase. The increasing cost of fertilizers, feed and construction, in particular, are to blame, the group said.

"The income of agriculture entrepreneurs will fall dramatically this year, by as much as one-fifth, and next year the decline is predicted to continue by another eight percent," Forsman-Hugg said.

However, the group's report noted that the rise in food prices will be balanced out by wage increases.

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