A public dispute has erupted between Sweden’s central bank, the Riksbank, and the country’s largest food industry lobby group over unexpectedly high food prices, Bloomberg reports.
The Swedish Food Federation has fiercely criticized Riksbank Deputy Governor Per Jansson for what they claim are unfounded accusations of aggressive pricing practices.
The clash comes amid ongoing concerns about elevated food costs in Sweden, which saw some of the highest inflation rates in decades during the past few years. The Swedish Food Federation, in comments to the Svenska Dagbladet daily on Friday, argued that food producers have largely absorbed the significant cost increases of recent years, leading to losses in both 2022 and 2023. Carl Eckerdal, the group’s chief economist, stated that the industry has not engaged in aggressive pricing and has, in fact, suffered financially.
The feud echoes concerns raised by the Riksbank in 2023, when policymakers suggested that grocers were inflating prices despite falling input costs. The Swedish government also increased its scrutiny of food retailers that year following data revealing that food costs had risen at their fastest pace since the early 1950s.
The timing of the current dispute is particularly sensitive, as Sweden’s central bank is shifting its focus from controlling inflation to addressing the country’s stagnating economy. Sweden’s economy has been stagnant for three years. Some Riksbank board members have even voiced concerns that inflation could potentially settle at levels that are too low. This shift makes the central bank’s public disagreement with a major industry body even more noteworthy.
The Food Federation contends that the accusations are unfair and do not reflect the realities of the market. Their argument is that the industry has been bearing the brunt of rising costs without passing them onto consumers to the extent that the Riksbank suggests.
