Grocery prices rise despite promised cuts

Grocery prices rose by 0.33% from August to November despite retailers’ announced price cuts and freezes, mbl.is reported, citing a summary from ASÍ’s price-monitoring service.

Price increases for meat, particularly beef, accounted for more than half of the rise in the grocery price index. Dairy products, fish and vegetables also became more expensive, while most price cuts applied to imported goods.

Bónus recorded the largest index increase, at 0.49%, followed by Krónan at 0.4%. Prices were nearly unchanged at Prís, where the index rose 0.06%, and Nettó, where it increased 0.02%.

Bónus had the highest share of products with price cuts, at 31.4%, but also the highest share with price increases, at 22.6%. Prices were unchanged for 46% of its products. At other retailers, price rises were more common than cuts. Prís had the highest share of products with unchanged prices, at 70.5%.

The pace of grocery price increases has slowed since the start of the year. The index rose by an average of 0.66% per month in the first quarter, compared with a total increase of 0.33% from August to November.

The index is based on matched comparisons of product prices. The share of products that rise or fall in price does not by itself determine the index, which also reflects the size of price changes and the products’ weighting. Changes in the index do not show which retailer is cheapest.