– We don’t know what next year will bring. It can get even stronger. That’s what Elise Brattgjerd Brenne and Anders Ringstad say. Together they have a 3-month-old son, Noah. And then they have a home loan. The couple pays around NOK 40,000 a month on student and housing loans. In addition, they pay 10,000 for insurance, car, municipal taxes and electricity. – I’ve probably reached the limit I’m at, but I’ll probably have to take another one. But it’s on the hanging hair, adds Ringstad. The couple has a combined income of approximately NOK 1 million a year and a home loan of NOK 6.5 million. Economists at Nordea have calculated that the family of three will improve their purchasing power by around NOK 13,000 next year. – Every time interest rates increase, our monthly expenses go up by around NOK 1,500. It is clear that we notice it, says Brattgjerd Brenne. But before it gets better, it will first get a little worse. Cheaper nursery places and nappy deals in the shop give hope for the economy in 2024: – It helps because a lot of nappies go to Noah, says Elise Brattgjerd Brenne. Photo: Eivind Aabakken / news It gets worse before it gets better – In the short picture, it will unfortunately get a little worse before it gets better. This is what senior strategist at Nordea Markets, Dane Cekov, says about the purchasing power of Norwegian households. Households have not yet noticed the latest interest rate increase from Norges Bank. She will appear in the online bank at the end of February. – The coming period is going to be tough for many, I think, says Cekov. The family of three say they are close to the limit of what they can tolerate. – It goes beyond everything else, but there is certainly money to get other places as well, says Brattgjerd Brenne. But then it will get better. – In the second half of the year things will be a little better and in 2025 things will be much better, adds Cekov. Then wages have increased and Nordea Markets predicts that purchasing power will increase. – We hope that is true, says Ringstad. We have to get used to higher prices – Households are left with a little less than they did a few years ago. They have less money to spend on what can be called non-essentials. That’s according to Kristian Myklathun, senior advisor in the Knowledge Department in the Directorate of Labor and Welfare. The family in Trøndelag saves as much as they can to afford the essentials. – I buy little clothes and unnecessary things. Me buys clothes for Noah used. The food budget has gone down a lot. There are no more hairdressing lessons. The electricity prices will probably be quite the same next year as in 2023. – With taxes and network rent, you probably have to count on 1.5 kroner in electricity expenses in 2024. And then we also include the electricity subsidy you get for power prices above 70 øre. That’s what partner Marius Rennesund in Thema Consulting Group says. – For an average household that uses around 20,000 kWh, this will amount to NOK 30,000 in electricity costs. He believes that the high electricity prices are here to stay. – We probably have to get used to higher prices and significantly higher prices than we have seen historically. From 1 January, the threshold value for calculating the electricity subsidy increases from 70 to 73 øre per kWh without VAT. High gas prices and high pressure on CO2 quotas are the reason for the high electricity prices. – This means that it will be more expensive to produce power in Europe and this also affects the prices in Norway, especially in southern Norway. The high krone exchange rate is also here to stay, believes currency strategist at Handelsbanken, Nils Kristian Knudsen. – I think the new normal is a slightly weaker krone, around 11 blank against the European common currency (Euro). After the latest interest rate increase from Norges Bank, the value of the Norwegian krone rose. – I think the krone can stay at this level as a start. And then I believe in a gradual strengthening beyond 2024, says Krudsen. And this is reason for optimism. – Now I am in a new situation where the international central banks seem to be about to start cutting interest rates. Then the market will be characterized by more optimism. Every time the interest rate increases, the monthly expenses of the Ringstad Brenne family go up by around NOK 1,500. Photo: Eivind Aabakken / news
ttn-69
Forecasts moderate improvement in household purchasing power in 2024 – news Trøndelag – Local news, TV and radio
