Economy

Norway food prices are high, but Rema’s owner says they are not

Norway food prices are again at the centre of a political and economic debate after Ole Robert Reitan, the owner of Rema 1000’s parent group Reitan Retail, argued that food in Norway is not expensive when measured against household incomes. His comments, made in the E24 video series Langs E24, come as official data show food prices rising faster than overall inflation and Norway remaining among Europe’s most expensive countries for groceries.

Reitan says high food prices reflect Norway’s own choices

Reitan’s central argument is that high grocery prices in Norway are not mainly an accident of the market, but the result of deliberate policy choices. According to him, Norway has chosen to protect domestic food production, maintain agriculture across the country and import only what is necessary. In that context, he said, prices are “what they become”.

The Rema owner also challenged what he described as a political narrative that food in Norway is simply too expensive. His point was not that checkout prices are low in absolute terms, but that Norwegians spend a relatively small share of their income on food compared with many other Europeans.

That distinction is important. Norway is a high-income country, with wages and costs above most European averages. A food basket can therefore be expensive in direct price comparisons while still absorbing a smaller share of household income than in countries where salaries are lower. Reitan’s argument rests on this relative measure of affordability.

Food inflation keeps pressure on Norwegian households

The timing of the remarks is sensitive because food inflation in Norway remains visible in household budgets. According to Statistics Norway (SSB), the overall consumer price index rose by 3.4 percent in the 12 months to April 2026. Food and non-alcoholic beverages increased by 6.6 percent over the same period, far above headline inflation.

The monthly change was also notable. Food and non-alcoholic beverages rose by 2.9 percent from March to April 2026, making the category one of the strongest contributors to the cost-of-living debate. Even if real wages and high incomes soften the impact for many households, frequent grocery purchases make price increases politically salient.

This is why Reitan’s claim can be both economically defensible and socially controversial. A relative income-based comparison may show that food takes up a limited share of average Norwegian spending. But for families with tighter budgets, students, pensioners or low-income workers, repeated increases in basic goods can still feel substantial.

Norway remains one of Europe’s most expensive grocery markets

European comparisons also complicate the picture. Eurostat data cited by E24 show that food and non-alcoholic beverages in Norway cost 32 percent more than the EU average. Norway is described as having the third most expensive food in Europe, behind only Switzerland and Iceland.

The comparison with neighbouring countries is particularly striking. Denmark’s food prices are reported at 20 percent above the EU average, while Sweden’s are 6 percent above. This means Norway’s grocery price level is not only high compared with southern and eastern Europe, but also above other Nordic markets.

Part of the explanation lies in geography and agricultural structure. Only a small share of Norway’s land is suitable for farming, production costs are high, and the country has long used tariffs and agricultural policy to preserve domestic food production. Reitan’s point is that this model has a price, and that voters and policymakers should recognise it openly.

Competition concerns remain part of the food price debate

Policy choices are not the only issue. Norway’s grocery market is also highly concentrated. Norgesgruppen, Coop and Rema dominate the sector, and competition authorities have repeatedly pointed to structural barriers that make the market difficult for new entrants.

In 2024, the Norwegian Competition Authority (Konkurransetilsynet) fined Coop, Norgesgruppen and Rema a total of NOK 4.9 billion (about €420 million) over cooperation linked to extensive price surveillance in each other’s stores. The authority said the practice increased price transparency between the chains without giving consumers better information, and that weak competition normally means higher prices.

The Competition Appeals Tribunal later upheld the authority’s decision. Reitan has defended the so-called price hunter system, arguing that the case is difficult to understand and saying that he does not believe most customers care about it. But the case remains politically relevant because it reinforces a broader question: how much of Norway’s grocery price level comes from public policy, and how much from market structure?

A Nordic debate about affordability, farming and market power

The Norwegian debate reflects a wider Nordic dilemma. Countries with high wages, strong welfare states and regulated markets often accept higher prices as part of a broader social and economic model. In food policy, this can mean protecting farmers, preserving rural production and reducing dependence on imports.

But the balance is becoming harder to defend when food prices rise faster than general inflation. For consumers, the issue is not only whether food is affordable in statistical terms. It is whether price increases feel fair, transparent and justified.

Reitan’s comments therefore expose a real tension in Norway’s food system. Norway food prices are high by European standards, but they are also shaped by a political choice to sustain domestic production in a difficult geography. The next stage of the debate is likely to focus on whether that model can coexist with stronger competition, clearer price information and more protection for households most affected by food inflation.

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