Bera pledges to keep price rises within inflation target

Bera, the parent company of Ölgerðin, Danól, Gæðabakstur and Kjarnavara, has pledged not to raise the prices of 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 chairmen of VR, LÍV and Fagfélögin asking the company to state its position on price developments and contribute to reducing inflation and interest rates.

Bera said the commitment would apply despite a 3.5% wage increase under collective agreements taking effect at the start of the year.

Bera is the parent company of several major businesses in Iceland’s food and beverage market, including Ölgerðin, Danól, Gæðabakstur and Kjarnavörur.

Ölgerðin produces brands including Egils Appelsín, Pepsi, Malt, Kristall and Collab, as well as other drinks. Danól imports and distributes numerous foreign brands.

Bera said the recent strengthening of the Icelandic króna was beginning to have an effect, with price reductions on imported goods from Danól and Ölgerðin expected in the coming days.

The company said it wanted to help increase predictability in price developments and hoped the government and social partners would take measures to reduce inflation.