On Friday, Statistics Norway (SSB) announced that prices in Norway rose by 5.7 per cent last year. Not since 1988 has inflation been so great. Earlier this week, Finanstilsynet concluded in its semi-annual report that the outlook for the Norwegian economy is very uncertain. It can be expensive for consumers. news has taken a closer look at inflation in some of the most common product and service groups. Power Illustration of various electrical installations. Electricity prices are among the most debated in the last year, and it is not without reason. The autumn and winter were characterized by strong inflation in energy products, and electricity bills to Norwegian households reached unprecedented heights. Electricity prices have since fallen, but despite this, the price of electricity was 27.2 per cent higher in May this year than it was at the same time last year. Enova’s tips for power saving 1. Lower the temperature The energy savings with reduced indoor temperature will vary depending on the type of home and over the year. As a rule of thumb, one can expect to reduce energy consumption for space heating by approx. 5 percent for each degree the indoor temperature is lowered. 2. Control the temperature automatically A heat control system a simple and affordable measure. The temperature is time-controlled in your home and ensures efficient energy use when you are at home and when you are not present. With a good heat management system, energy consumption for heating can normally be reduced by 20 percent. 3. Install sealing strips You can find air leaks around the window by guiding a candle along the strips and along wall and ceiling strips inside the room. The flame will flicker if there is draft. 4. Save on hot water There are simple measures you can take to limit energy consumption for heating water. And the simplest measure is to switch to an energy-saving shower and install energy-saving nozzles on water taps. 5. Re-insulate the home Insufficient insulation leads to cold floors and walls, as well as high electricity bills. Air leaks are often noticed as drafts around windows, doors, in the transition between wall and floor / ceiling and along floors. 6. Change heating source Different types of heat pumps are climate-friendly alternatives to electric heating. With a heat pump, you get more heat out of every kilowatt-hour. It can also pay to install e.g. a wood stove or pellet stove. The average price for electricity in June this year is NOK 1.84 per kilowatt hour in Eastern and Western Norway. In southern Norway, the average price is NOK 1.94 per kWt, while in central Norway and northern Norway it is significantly cheaper for electricity with NOK 0.25 per kWt and NOK 0.10 per kWt in average price, respectively. The growth was so great this winter that the government had to introduce a separate electricity support scheme worth more than NOK 25 billion. The support scheme means that customers are paid an amount based on their own monthly electricity consumption and a support rate. Without the support scheme, the consumer price index would have been 7.7, and not 5.7, Statistics Norway writes. Fuel It is not just electricity prices that have skyrocketed in the last year. Fuel prices have also seen new heights. Most recently in May, a new price record was set for both petrol and diesel. Figures from Statistics Norway show that petrol and diesel prices rose by 6.1 and 6 per cent respectively in the last month. RECORD: Fuel prices have been record high this year. Photo: Roald, Berit / NTB scanpix If you compare the prices of fuel from May this year with the same month in 2021, the price has risen by as much as 40.3 percent. Fuel prices of NOK 30 per liter are expected this summer, but Minister of Finance Trygve Slagsvold Vedum will not yet introduce a similar support scheme for fuel, such as electricity support. Food and drink The price of food and beverages has also risen in the last year. If we compare the prices for May this year, with the same month last year, we see that the prices of food and non-alcoholic beverages have risen by 3.1 percent. MORE EXPENSIVE: The grocery trade has become more expensive. It goes beyond the wallet of most people. Photo: Rahand Bazaz / news In addition, prices for hotel and restaurant services have risen by 7.7 per cent in the same period. It shows figures from Statistics Norway. Alcoholic beverages and tobacco experienced a price increase of 2.9 per cent in the last year. According to Statistics Norway, this has had an effect, and the wine monopoly has experienced a decline in turnover compared with last year. Holidays The rise in prices for necessary goods such as electricity, fuel and food has led to more people now being unsure of how to spend their holidays. A survey conducted by Storebrand shows that more than half of Norwegians with holiday plans have been forced to cancel or postpone their holiday. SOUTH: Several Norwegians may have to cancel holiday trips to warmer regions. Photo: Petter Strøm / news – Very many have had to use the holiday money because they have been behind, and do not have a buffer account. In addition, it has become more expensive with both travel and accommodation, so many have received a different calculation than they planned, explains consumer economist Cecilie Tvetenstrand in Storebrand. She believes the uncertainty surrounding Norwegians’ finances, and the announced interest rate rises, affect people’s priorities. – Many are unsure of what the autumn will be like, and are careful about spending too much money now, she adds. Loans and interest rates During the corona pandemic, Norwegians experienced historically low interest rates, with a base rating of zero. Norges Bank first raised the interest rate in the autumn of 2021, then to 0.25 per cent. Two more interest rate hikes have taken place since then, and the key policy rate is now 0.75 per cent. In its latest Monetary Policy Report, Norges Bank warns that the key policy rate will rise further. The first interest rate decision is expected on 23 June, and Statistics Norway then believes that Norges Bank can raise interest rates more than expected. – Norges Bank will probably raise the interest rate by 0.5 per cent in June. It will probably continue to be raised to 2.5 percent next year, says Thomas von Brasch, researcher at Statistics Norway. At the end of 2023, it is estimated that the key policy rate will be 2.5 per cent. In practice, this means a mortgage interest rate of about 4 per cent for Norwegian borrowers. NORMALIZED: Consumer economist Cecilie Tvetenstrand emphasizes that interest rates are on their way back to normal after the corona pandemic. Photo: Lise Eide Risanger – It is important to remember that we have had historically low interest rates. It is not the case that interest rates will rise to an abnormally high level, but rather return to normal again. But it is clear that if you took out a loan during the pandemic, you have not experienced anything else and are getting used to having good advice, Tvetenstrand concludes. On Friday, Lånekassen also decided to raise the interest rate by 0.7 percentage points, so that it now passes 3 per cent. It goes hard on the students.
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Electricity, fuel, food and drink, loans and interest rates have become more expensive – news Norway – Overview of news from different parts of the country
