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Highest Norwegian inflation since 1998

The new figures show a significant increase in living expenses over the last 12 months in Norway. Here are the facts and numbers behind the amazing news.

The Norwegian government agency Statistics Norway (SSB) has announced that Norwegian inflation has reached its highest level since 1998.

What this essentially means is Living expenses in Norway Ascended. Specifically, the Consumer Price Index (CPI) rose 5.7% from May 2021 to May 2022. This is the highest growth for 12 months measured by SSB since December 1988.

of the publication, SSB commented that high inflation leads to a rapid rise in interest rates. “This, coupled with the internationally constrained outlook, will slow Norway’s growth.”

Fuel and electricity prices soar

Anyone who has recently paid for energy in Norway will notice the price increase.

“From a historical point of view, this is the strongest price increase measured since December 1988. First and foremost, the increase in electricity and fuel prices will greatly increase the 12-month change in CPI,” SSB said. Espen Kristiansen said.

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“Electricity prices have fallen slightly from April to May, but have risen at the same time last year, but 12-month prices have risen,” he added.

Other costs will also increase

But fuel and electricity weren’t the only causes of inflation’s surge. Significant price increases for furniture and groceries also contributed.

For example, food prices in May were 3.1% higher than they were a year ago. This is an increase from the 2.1% 12-month growth measured in April.

Responsible international conditions

According to SSB’s analysis, changes in international affairs are the cause of inflation. Most notable Russia invades Ukraine It caused turmoil in the energy market.

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Soaring crude oil prices have pushed up fuel prices for pumps. Soaring gas prices and European market conditions have also pushed up Norwegian electricity prices.

Due to international supply chain issues, shipping costs are increasing along with commodity prices.

All these factors contributed to the significant rise in prices of imported goods such as furniture and interiors. These items increased by up to 16.9% in 12 months.

What do you think? Did you notice any changes in your living expenses last year?

https://www.lifeinnorway.net/inflation-in-norway-highest-since-1998/ Highest Norwegian inflation since 1998

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