Bera pledges to limit New Year price rises to 2.5%

Bera, the parent company of Ölgerðin, Danól, Gæðabakstur and Kjarnavara, has pledged not to raise prices on its products by more than the Central Bank of Iceland’s 2.5% inflation target at the turn of the year, mbl.is reports.

The decision follows a letter from the heads of VR, LÍV and the Trade Unions, which requested the company’s position on price developments and called for measures to reduce inflation and interest rates.

Bera said the commitment would remain in place even though a 3.5% wage increase under collective agreements takes effect at the start of the year.

Bera is the parent company of several major businesses in Iceland’s food and beverage market. Ölgerðin’s brands include Egils Appelsín, Pepsi, Malt, Kristall and Collab, while Danól imports and distributes a range of foreign brands.

The company said the recent strengthening of the Icelandic króna was beginning to have an effect and that price reductions on imported products from Danól and Ölgerðin were expected in the coming days.

Bera said the decision was intended to contribute to greater predictability in price developments. It also expressed hope that the government and labour-market organisations would take action to reduce inflation.