After a period of record-high food price increases, inflation is now moderating. Already a month ago, the food giants flagged for levelling off or even falling prices, but now they are more confident that the price increase has stopped and will turn down for some goods.
"It's been a break in the trend, that's for sure. The rate of price increases is slowing down and we will be able to continue to reduce prices," says Nina Jönsson, CEO of ICA Group.
But there is a big difference between reduced rates of increase and reduced prices, will prices really fall?
"Yes, there will be falling prices, but it is an uncertain situation. We do not know when the war will end or when the whole world market will turn in terms of demand, or indeed supply due to climate change. All this creates uncertainty in the market.
"Reduced prices for everyday food"
Axfood, with Willys and Hemköp, increased adjusted profit during the first months of the year. This is largely due to the fact that the low-price profile Willys has attracted more customers and is growing almost 25 percent, while ICA is losing market share.
Is it the case that ICA is too expensive?
"No, it's not. It is clear that we are working on our customer offering, and we have reduced prices for everyday food right now," says ICA Group's Nina Jönsson.
Believe in sharply falling food price inflation
Axfood's CEO Klas Balkow also believes that lower food prices are to be expected, at least in certain product groups.
"I am pleased that commodity prices for food are starting to go down, and the pressure from our suppliers is decreasing. So I think there are hopes that food price inflation will slow down sharply here now in the coming period," he says.
Can you say anything about how much prices can be reduced?
"We reduce prices from our suppliers as soon as we get prices down, but how much it can be depends on the entire chain and the Swedish currency, so it's difficult to predict right now," says Klas Balkow.