Retail prices of foodstuffs in Finland 15% higher than EU average in December

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In December 2009, the retail prices of foodstuffs in Finland were approximately 15% higher than the average for the EU27, according to a study carried out by ETLA, the Research Institute of the Finnish Economy.
      More than half of the difference, according to ETLA, derives from the fact that Finland levies a higher than average amount of VAT on foodstuffs.
     
Another explanatory factor is said to be the problems with competition brought by unfavourable natural circumstances for agriculture in these latitudes.
      The survey indicated that no individual retail chain had overwhelming powers to set prices, but that the retail trade and the foodstuffs industry did exhibit signs of healthy competition, even if the branch in the Finnish market is well-known to be highly concentrated in a few hands.


Links:
  ETLA The Research Institute of the Finnish Economy

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