A third of Norwegian households have had a worse economy since January. This is revealed in a recent report from the Consumer Research Institute SIFO. The ability to pay bills, interest and installments is described as problematic for a quarter of all households. – We have had an expensive period that has built up since last autumn and strengthened through the winter. Then we are talking about higher prices for electricity, fuel, food and increased interest. The sum of this turns out differently and someone gets hit extra hard, he says. Two-thirds say that they have had to cope with the increased cost of living by limiting their consumption. This means reductions in electricity consumption, car use as well as less social interaction. 21 percent say that they have reduced their food budget to make ends meet. This figure rises to over 60 per cent among those who are most severely affected, the report states. – There are certain danger signals in this report and it is the high proportion who say that they must save on the food budget. There are limits to how little you can spend on food and for some you already have little money for food, says Poppe. Main reason: The increase in electricity prices The researchers have interviewed a representative sample based on the 2.1 million households in Norway. Compared to June 2021, the proportion of people struggling financially is increasing, the report states. Although it is the general price increase that is monar, there is one main reason that hits particularly hard, according to the researcher. – The electricity price has been the single most important factor, he says. 66 per cent of households say that they have had problems paying the electricity bill. People in northern Norway have been less affected by the price increase than in the south. The reason is the differences in the electricity price. In the last three weeks, electricity prices in southern Norway have been a whopping 131 times more expensive than in northern Norway, figures from the electricity exchange Nordpool show. According to SIFO’s research, it is the electricity price that is the single most important factor behind the decline in many households’ purchasing power. Photo: Øystein Otterdal / news The dream of a home is becoming more distant From last summer to this year, the consumer price index has risen by 6.3 per cent in Norway. In the autumn and winter months, it was especially the huge increase in electricity and fuel that hit households the hardest. Mia Vaagen Holm Johnsen notices the price increase and says that the dream of a home is becoming more and more distant. – The dream has gone from owning a business, to a house, to a flat, to a flat with its own bedroom. It just becomes less and less, what one dreams about, she says. Mia Vaagen Holm Johnsen says that she has changed her eating habits in light of the price increase. The dream of owning your own home is also becoming more distant. Photo: Vegard Haugland Strand / news – Worse than the corona crisis Researcher Christian Poppe believes that this price crisis has wider and worse consequences than the corona crisis. – Corona was targeted and hit certain industries. This is a crisis that affects much more people, because it affects everyone, he says. It is also the case that many have got worse after the corona crisis and are therefore in a much worse starting point. – We have just been through a corona crisis where many used up the reserves they had in the form of savings. There is a core here that has a much worse starting point as we have had a new crisis so close to the corona pandemic, he says. Consumer researcher Christian Poppe believes that the price crisis has a worse and wider impact than the corona crisis. – The price increase affects everyone, he says. Photo: Geir Ingar Egeland / news NHO: People press harder on the brakes NHO notices that general consumption has changed markedly from the time during the pandemic, when shopping patterns were largely directed towards product purchases. Subsequently, this has moved in the direction of services with travel, restaurants and activities. Now people have oriented themselves to a greater extent towards what is necessary. – There is no doubt that rising interest rates, fuel prices and electricity make us think extra about what we put in the shopping basket, says industry director of NHO service and trade, Linda Vist. Generally speaking, turnover in trade is still above the level if we compare with figures from before the pandemic. – A normalization is not unexpected, but with the economic picture we have now, the brakes are pressed harder and faster, she says.
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One in three households has had a worse economy since January – news Norway – Overview of news from different parts of the country
