We’ve heard it for a long time now: everything is becoming more expensive for most people. Not just electricity and petrol, but also goods and services. And not least mortgages, for those who have them. The price of food rose in 2022 by 11.5 per cent, three times more than wage growth, which is expected to be 3.9 per cent. But you don’t need to look darkly at everything, say those who are experts on money and spending: Inge FurreChief economist at Sparebanken MøreEducated social economist Worked in the Ministry of Finance and is a guest lecturer at the Norwegian School of EconomicsEirik KavliBank manager at Ørskog SparebankEducated market leader and has a master’s degree in economics, administration and managementHas worked in various banks for 20 years Most of them have a job ?? The vast majority of us receive stable money in our account, either through a scholarship or a salary. – Perhaps the most important thing is what gives us income – the unemployment rate is very, very low, says Kavli. At New Year’s, 2.7 per cent of the workforce, i.e. those who are of an age and health so that they can work, were unemployed. During the pandemic, in March 2020, the figure was four times as high. Furre believes unemployment will increase somewhat, but says there is every reason to believe that most of us will have a job to go to in the future as well. – And that unemployment will remain relatively low in a historical perspective, he says. Yes, industrial work may not be what Erna Solberg does on a daily basis, but she has a job, like the vast majority of us. Photo: Josef Benoni Ness Tveit / news We buy less things and things ? Norwegians buy less daily necessities and clothes now than before the pandemic. A slimmer wallet is a good chance to assess how much we actually need, especially considering that our consumption needs to decrease in order to reach the climate targets, Kavli believes. – Reuse of sports equipment is an excellent example of what we can perhaps be better at. Use such buy and sell sites online and buy used equipment, instead of everything being brand new at any time, says Kavli. – Purchasing power has been weakened by high inflation and rising interest rates, so it will be necessary for many to be more frugal in 2023, adds Furre. We only use money we actually have ? Or, not only, but Norwegians’ consumer debt has been falling for years. – It is one of my fads to only spend money that you actually have. Not using the credit card to buy things you don’t need, but rather saving and using the money you have, says Kavli. He says he has seen a reduction in the number of people taking out unsecured debts recently, and thinks the high prices have something to do with it. – When things become more expensive around us, we have to be honest with ourselves and say “I actually can’t afford this”. The money you bought the new skis for – do you actually have them, or is it money you haven’t paid yet? Photo: Josef Benoni Ness Tveit / news We shop smarter ? – It’s a good opportunity to sit down and take stock of yourself and your own consumption pattern, says Kavli. He believes that there is a lot to be saved by changing the way you shop. For example, planning their actions and avoiding the most expensive options, as many Norwegians have already done. – Food prices will now be adjusted by around ten percent in February, according to the industry, says Furre. – To live a little more soberly, I think we all benefit from that, says Kavli. Increased food prices The comparison of food prices and the wage trend says something about whether you get more, less or the same amount for your money. When the development of food prices is higher than the development of wages, it means that food has become more expensive. Both figures are averages for the specified period. Read more about sources and reservations here. How much food prices have increased in the last year, in comparison with wage development Food Dec 2021 – Dec 2022 Wage development Forecast for 2022 We can talk more about finances ?️ Kavli and Furre believe that tighter personal finances can force us to learn more about our money. Among other things, the children get an understanding that “this is the money we get in, and this is the money that goes out for fixed costs”, as Kavli says. – We simply have to talk to each other, so that there is not always an expectation that mum and dad have money on the card and it will be alright. Soon it will be better. Maybe. – It will be a demanding year for both households and businesses. But there are bright spots to track if you look ahead, says Furre. One last example he brings up is rent. Norges Bank did not raise the interest rate in January, but the governor of the central bank says that they will probably increase it further in March. – Norges Bank has signaled that interest rates will be raised in the first quarter of this year, but we are starting to see an interest rate peak. If rent falls, most people will have more to deal with again. Policy rate in percent The policy rate is set eight times a year by Norges Bank. The policy interest rate governs the interest rates in the banks, and affects your housing costs. The aim of raising the interest rate is for the high prices to come down again. The forecast tells us how Norges Bank thinks interest rates will develop in the future. Read more about sources and reservations here. A higher interest rate means increased expenses if you have a mortgage
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More expensive food and higher interest rates, but here are five good news for your finances – news Møre og Romsdal – Local news, TV and radio
