– We have some good dinners, and then noodles on other days, says Camilla Mørk. She and her roommate Snorre Klanderud are at Coop Extra in Bogstadveien in Oslo to shop for today’s dinner. It costs too much, they think. Both are prepared that food will only become more and more expensive. – I expect that prices will rise, says Klanderud. – Either the prices have to go down, or we have to earn more, he continues. Cheaper imported goods In 2023, the price of food will rise by 10 per cent, figures from Statistics Norway show. For 2024, it is assumed that prices will continue to rise, but significantly less than in the last two years. – I believe that we must expect a price increase this year, compared to 2023, of around 4 per cent. That’s what Ivar Pettersen says. He researches food prices in Alo-Analyse. Pettersen believes that the agricultural settlement and the wage settlement will be the two most important driving forces behind prices continuing to rise in 2024, although he expects imported goods such as grain and oil to become cheaper. A wage settlement of 5.4 per cent, as announced by Statistics Norway, and an increase in agricultural prices of at least 5 per cent, in itself indicates that food prices will rise by 4.5 to 5 per cent, Pettersen believes. – Then the import prices will moderate the Norwegian price increase somewhat. Has a bearing on interest rates Pettersen emphasizes that even if 4 per cent is a lower price increase than last year, it is still higher than what we were used to before 2022. – And it is higher than what is compatible with a decrease in interest rates. We still have high food price inflation, says the researcher. The price of food and drink has a major impact on overall inflation in Norway, says chief economist at DNB Markets, Kjersti Haugland. Chief economist Kjersti Haugland believes the price increase is on track. Photo: William Jobling / news However, she believes that a food price increase of around 4 per cent is not in itself an obstacle to interest rates being reduced this year. – Although this is far too high in relation to the inflation target of 2 per cent, at least price growth is on the way down. It is going in the right direction, even if it is going slowly, she assures. – Therefore, we believe that there will be room for two interest rate cuts before the end of the year, even if overall price growth will end at 4 per cent this year.
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Thinks that food prices will rise much less this year – news Norway – Overview of news from different parts of the country
