Output prices of food industry rising less and less

Prices in the food industry rose 16 per cent in February 2023 compared with a year earlier. However, since July 2022, when the food industry price increase peaked at 23.2 per cent, prices have risen less each month. 

This is in contrast to the prices consumers pay for their food in retail shops. Consumer prices rose every month from September 2021 until February/March 2023, when they rose by 18.4 per cent. This is according to an analysis of recent CBS price figures.

Peak level reached in various industries

Although prices in the flour industry and the fruit and vegetable processing industry peaked in February this year, prices in other branches of the food industry are still high. For instance, price increases in the slaughtering and meat products industry (+23.7 per cent), the fish processing industry (+21.6 per cent) and the bread industry (+18.6 per cent) remain high.

Decline in edible oils and fats industry

Prices of edible oils and fats rose by only 1.4 per cent in February 2023, just above the lowest level since October 2019. As recently as January 2023, prices of edible oils and fats rose by 10.6 per cent, and as much as 37.4 per cent in June 2022. 

In the dairy industry, price increases have also declined, from an average increase of 17.8 per cent in 2022 to 10.6 and 8.9 per cent in January and February 2023, respectively. The same goes for the animal feed industry, where price increases have declined from an average increase of 28.8 per cent in 2022 to 14.4 and 10.4 per cent in January and February 2023, respectively. Falling oil prices have clearly affected output prices in the oils and fats industry.