The cut in value-added tax on food, which took effect on October 1, accounted for 4.3 percent of the decline.
When the VAT cut was announced, there were suspicions that the reduction would not be passed on to consumers. Now it seems that the move has instead accelerated a declining trend in food prices.
Large shops cut their prices more than small ones.
The information is based on a study which began over a year ago, conducted by the Consumer Research Centre in cooperation with Finland’s state provincial offices. Price information for the study is collected at 80 retail outlets around the country.
