Groceries see first price drop in Iceland since wage agreements with new discount store opening

The cost of groceries has decreased for the first time since wage agreements were signed at the beginning of the year. According to a recent analysis by the ASÍ price supervision, prices fell by approximately 0.2% from July to August. This decline was anticipated ahead of the opening of Prís, a new discount supermarket, last weekend.

In the competitive grocery market, prices at Nettó, Kjörbúðin, and Krambúðin have dropped month-over-month, while prices at Hagkaup have remained stable. Bónus experienced a slight price increase in August, but overall, prices in Krónan increased less than in Bónus when looking at longer time frames.

Since the signing of wage agreements in March, grocery prices have risen between 0.2% and 0.7%. The most significant increase occurred in the previous month at 0.7%, largely due to price hikes in Samkaup’s stores, although Nettó has seen price reductions across most categories in August. Bónus saw the largest price increase this summer, especially for fruits, meats, fish, and candy.

On its opening day, Prís offered lower prices than both Bónus and Krónan in 96% of cases, with price differences exceeding 10% in over 10% of instances and more than 5% in over a quarter of cases. However, the full impact of Prís’s market entry has yet to be realized, as the store opened late in the period under review by ASÍ’s price supervision.