Food prices fell by 4.1 percent in March compared to February, according to Matpriskollen. Meanwhile, preliminary figures from Statistics Sweden (SCB) released on Tuesday indicated a decline of 1.0 percent.

The discrepancy is explained by differing measurement methodologies. SCB measures prices during the week containing the 15th of the month, as well as the preceding and following weeks. In contrast, Matpriskollen conducts its measurements on the final day of the month.

According to Matpriskollen, the decline was driven by lower dairy prices and early adjustments ahead of the April 1 VAT reduction, resulting in the sharpest drop in 30 years. Cheese prices decreased by 6.5 percent, while sausages and ice cream fell by 4 percent. On an annual basis, prices decreased by 3.1 percent according to Matpriskollen, whereas SCB data showed unchanged levels.

"There is still some impact from the VAT cut to be realized in April, as many independent stores waited until the final day to lower prices, while chain-managed outlets implemented cuts earlier," says Ulf Mazur, CEO and founder of Matpriskollen.