Food prices continue to fall—but at the same time, new VAT rules for food may be on the horizon. The government now wants to investigate whether certain food items should be taxed differently once the temporary VAT reduction ends. The question is whether the change can keep household food costs down even in the long term.
Food prices continued to fall in June as well. According to Food Price Tracker Regular food prices fell by 0.2 percent during the month. Since the start of the year, food prices have fallen by 6.0 percent, and compared with a year ago, they are about 5.6 percent lower—partly as a result of the temporary VAT reduction introduced on April 1.
The sharpest price drops are seen in dairy products, cheese, and fruit, while the prices of beef, ground meat, and berries continue to rise. At the same time, Matpriskollen reports that its data shows no signs that stores have raised prices ahead of the VAT cut.
The government wants to review the VAT on food
At the same time, the government is appointing a investigation to differentiated food sales tax, which means that different foods may be subject to different VAT rates depending on the type of product. The aim is to keep costs down for essential foods once the temporary VAT reduction ends.
– We want to examine how the VAT on food can be differentiated to keep down the costs of household purchases of essential food items that many hardworking Swedes buy every week, says Finance Minister Elisabeth Svantesson.
The project will be completed in December
The investigator shall be able to propose up to three different VAT rates for different food categories. The mandate also includes considering other ways to support households once the temporary VAT reduction ends. The proposals must be submitted no later than December 22, 2026.
At the same time, Matpriskollen estimates that households can continue to reduce their food costs by comparing prices across stores, taking advantage of promotions, and shopping seasonally. However, the company warns that rising costs for energy, transportation, and fertilizer could put pressure on food prices later this year.
Everything is going according to the WEF agenda. Corrupt people are to be mass-executed, we’re supposed to eat insects, and meat is a luxury item that few can afford. Prices for ground mixed meat, ground beef, pork chops, and beef are already sky-high. Is anyone else besides me noticing that ground pork is being marketed more and more? Because it’s cheaper.
I agree with you on everything.
"Cows are to be culled en masse," it should say