New figures show a new, sharp price jump in food prices. The price of food and drink has increased by 10.4 per cent in the past year. In July alone, prices rose by 7.6 per cent. – We have never previously measured a similar price increase for food from one month to another in the CPI, says section manager Espen Kristiansen at Statistics Norway. But not everyone necessarily sees this as something negative. Farmer and commentator in the Nation, Hans Bårdsgård, reacted like this on Twitter. – Good. SAYING: This is how Bårdsgård reacted on Twitter after the news this morning. Photo: Screenshot from Twitter Will be noticed most by those with poor advice He is of the opinion that it is good that prices are now increasing. There are two reasons for this: – Food prices make up a very small part of most people’s income, between 10 and 11 per cent. People in other countries, who spend 20-30-40 percent of their income on food, will not understand that a normally wealthy average Norwegian complains about the price of food. Statistics Norway: This is how much money Norwegians spend on food and drink According to Statistics Norway (Statistics Norway), food and non-alcoholic drinks (mineral water, milk, coffee etc.) make up 12.8 per cent of Norwegians’ total consumption. – There are several ways to define the concept of consumption, but a simple way to estimate it is to use the weights of the consumer price index (CPI), says Espen Kristiansen in Statistics Norway. – If you invest in housing, pay off a loan, it is considered investment and not consumption. Secondly, he points out that food prices in the world have increased greatly in the past year, while the increase in Norway has not really been that bad in comparison, he believes. – As it is today, it is good that Norwegian food prices are increasing, because they have increased very little through the corona, energy and war crisis, compared to other countries. Bårdsgård says that people with poor means will feel the increased food prices most on their wallets, but believes that this group is best helped through the tax system. – People who can’t afford it will of course notice this. But forcing food prices down for everyone is bad social policy. CLEAR SPEECH: Hans Bårdsgård is a commentator in the Nation and has clear opinions about increases in food prices. Photo: Privat Gets partial support The latter, Fernanda Winger Eggen, university lecturer in economics, at the University of Oslo disagrees with. – I can’t see that there is any reason why we should want to pay a larger share, just because it is a higher proportion of the income that goes to food in other countries. She says that high food prices will affect those with the lowest incomes, because food is something everyone must buy regardless of income. – It makes it very advantageous when the prices of the products that everyone buys a lot of are cheap when it comes to distribution. Winger Eggen, on the other hand, agrees more that Norwegians have little reason to complain about food prices, compared to other countries. – Bårdsgård has a point in that sense, and I agree to a certain extent that we don’t need to complain so much. She sends news the following overview of the share of income spent on food. The overview is not completely up-to-date, but gives a good picture: – The overview is from 2019, so something may have changed, but I don’t want to think there are major changes in the order, says university lecturer Winger Eggen at UIO. Illustration: Eurostat The electricity price is to blame. She believes that the high electricity prices in the southern half of the country are one of the most important factors in the fact that food prices in the shops are now increasing very much. – There are several factors that pull in the same direction. The war is one thing, but electricity prices are another big factor. She points out that much of the meat, vegetables and dairy products are produced in Norway. – So when the Norwegian producers get higher costs for electricity, it affects the prices we see in the store. If the high electricity prices persist, the high food prices will also persist in Norway. Are you worried about increased food prices? Yes No Not sure Show result Is it not the farmer’s fault Secretary General Sigrid Hjørnegård of the Norwegian Farmers’ Association is visiting Nordland today. news meets her in Helgeland, where she talks to farmers who despair at how bad summer weather has created challenges for the operation. Hjørnegård says that increased food prices are primarily due to international crises. – It is to a small extent due to the farmer that the prices have gone up. She says that people just have to prepare for the fact that prices will continue to rise in the future. – First and foremost as a result of the fact that there are crises in the world. Internationally, we are seeing a food situation we have not seen before, and this is also affecting Norwegian consumers. – It is important to maintain a food price that means that we have Norwegian food production throughout the country, says Hjørnegård. ON VISIT TO NORTH LAND TODAY: General Secretary Sigrid Hjørnegård of the Norwegian Farmers’ Union. Photo: ole-christian olsen / news The leader of Nordland farmers’ association, Trond Bjørkås, also doubts that food prices will fall. He also believes that there is again reason to discuss the relationship between the price in the shop and the share the farmer is left with. IN HELGELAND: Trond Bjørkås in the Nordland Farmers’ Association meets the management of the Farmers’ Association in Helgeland today, where crops and bad summer weather are the topics. Photo: Ole-Christian Olsen / news – We get crumbs in relation to the price increase in the shop. He also says it is worth noting that, after all, we spent a larger proportion of our income on food in the past. – It is right that you have to pay for food security and clean and safe Norwegian food. High Norwegian food production costs money. We are talking about national preparedness. Coop: Not positive The director of communications in Coop Norway is called Bjørn Takle Friis. CHIEF OF COOP: Director of Communications at Coop Norge, Bjørn Takle Friis. Photo: Coop When asked how the price increase is in Norway compared to other countries, he says that price increases can be seen all over the world. – But historically speaking, what we are now seeing are very large price increases within a short period of time. At the same time, he is clear that there are bright spots for the farmer. Because they’ve got more to mess with. – The farmer agrees with the state in the settlement. Increased target prices were set for cereals in particular, but also meat products and other goods. We wish the farmer that. – They got a good settlement and have been compensated for many of their cost increases. Many parts of business have not been compensated for these cost increases. When asked how price growth is in Norway compared to other countries, he says that price increases can be seen all over the world. – But historically speaking, what we are now seeing are very large price increases within a short period of time. – Commentator Hans Bårdsgård in Nationen has a perspective that this is somehow good news? – For consumers, this is not good news. It is important for consumers that prices do not increase too much, as this constitutes a large part of many households’ consumption. In that sense, we do not see these price increases as something positive. – Is the price increase lower here than in many other countries? – The price increases for food and drink in July are probably above average. But we have been below for several months this year. But these price increases came faster in a number of other countries. This summer it also came stronger here. – The picture ahead still does not look so bright. We are watching with excitement, says Friis.
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Thinks a record increase in the price of food in Norway is good – news Nordland
