– You have to think a little when you shop in the store, whether it’s food, clothes or whatever. So you become more aware when it comes to your personal finances, says Siren Sundby. Like many other Norwegians, she has felt the high price increase on her wallet. On Friday, the figures came from Statistics Norway, which showed that price inflation in Norway rose to 7 per cent in January. Ali Aslan says he notices that prices are rising for almost everything. – Before, I could buy two carrier bags of food for NOK 300-400 in the shop. Now it costs NOK 700, so it is twice as expensive, says Ali Aslan. The banks believe in higher interest rates Macro analyst at Nordea Dane Cekov says they expect an interest rate peak of 3.50 in June. The predictions for the future are not brighter among economists. The high price increase in Norway has continued despite a number of interest rate increases from Norges Bank and now analysts believe that it will continue to rise. In a recent analysis, Nordea believes that Norges Bank will raise the policy rate to 3.5. – We have adjusted our forecast upwards. Before, we thought Norges Bank would raise the interest rate to 3.25 in June, but now we expect an interest rate peak of 3.50 in June, says macro economist at Nordea, Dane Cekov. – This is both because inflation has been higher than Norges Bank envisioned, and because developments in the Norwegian and global economy have improved. At Norway’s largest bank, DNB, the predictions are also gloomy for people with high mortgages. Senior economist Kjersti Haugland at DNB also believes in higher interest rates going forward Photo: Inger Johanne Stenberg – The inflation figures were stronger than expected and far stronger than what the central bank had assumed. This means that Norges Bank will lift the interest rate plans when they present the plan in March, says chief economist at DNB, Kjersti Haugland. Heralds tougher pay settlements Rising prices for both food and energy have meant that more Norwegians have had less to deal with. Several aid organizations that news has spoken to say that the food queues have only gotten longer. The high prices also cause LO to announce tough demands in the wage settlement. LO leader Peggy Hessen Følsvik warns of tough demands in the salary settlement. Photo: Patrick da Silva Sæther / news – Those who have the least are also the ones who have been hit hardest by this increasing price rise that we have seen. We will focus on lifting those who earn the least, says LO leader Peggy Hessen Følsvik.
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Economists expect higher interest rates – LO warns of tougher wage settlement – news Norway – Overview of news from different parts of the country
