Today in Norway: A roundup of the latest news on Friday
The latest cost of living figures and the Norwegian economy to slow down, plus other news from Norway on Friday.
Latest inflation figures
Prices in Norway have risen by 6.5 percent between November this year and the same month last year, the latest figures from the national data agency Statistics Norway show.
Between October 2022 and November this year, the consumer price index, which measures inflation, actually fell 0.2 percent.
A stronger rise in electricity prices was measured from October to November last year compared to this year. This is the main reason why twelve-month growth dropped from 7.5 per cent in October to 6.5 per cent in November.
Food, furniture, hotel and restaurant services and cars were the goods and services which rose the most in price over the previous 12 months.
Interest rates to peak soon
Statistics Norway has also forecasted that interest rates in Norway will soon peak at three percent. The national data agency expects this to happen next year.
Norway’s central bank, Norges Bank, has raised interest rates frequently and sharply for over a year. The central bank sees higher interest rates as a tonic to curb inflation.
The key policy rate in Norway is currently 2.5 percent, meaning only 0.5 percentage points are required to reach the predicted target.
Norway’s economy is also set to slow down
Significantly lower growth is expected in the Norwegian economy next year, Statistics Norway writes in a forecast.
“The state receives record high revenues from the oil and gas business, inflation is far above the inflation target, and there is high pressure in the labour market. The latter tends to coincide with economic upswings, but this is not the case now,” Thomas von Brasch from Statistics Norway explained.
“It is a complex picture. We expect a moderate downturn in the economy in the short term. The level of activity is nevertheless cyclically neutral and will continue to be so,” he added.
Energy prices to rise next year
Energy prices are set to shoot up at the beginning of next week, business and financial site E24 writes.
Cold weather, little wind production and maintenance of nuclear reactors in neighbouring Sweden are all expected to affect Norwegian prices.
“Cold weather has been reported. The combination of cold and little nuclear power is not the best combination,” Tor Reier Lilleholt from Volue Insight told E24.
“This becomes strained when it starts to drop below minus ten. In such a situation without enough capacity, prices can go uncontrollably high for individual hours,” he added.
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Latest inflation figures
Prices in Norway have risen by 6.5 percent between November this year and the same month last year, the latest figures from the national data agency Statistics Norway show.
Between October 2022 and November this year, the consumer price index, which measures inflation, actually fell 0.2 percent.
A stronger rise in electricity prices was measured from October to November last year compared to this year. This is the main reason why twelve-month growth dropped from 7.5 per cent in October to 6.5 per cent in November.
Food, furniture, hotel and restaurant services and cars were the goods and services which rose the most in price over the previous 12 months.
Interest rates to peak soon
Statistics Norway has also forecasted that interest rates in Norway will soon peak at three percent. The national data agency expects this to happen next year.
Norway’s central bank, Norges Bank, has raised interest rates frequently and sharply for over a year. The central bank sees higher interest rates as a tonic to curb inflation.
The key policy rate in Norway is currently 2.5 percent, meaning only 0.5 percentage points are required to reach the predicted target.
Norway’s economy is also set to slow down
Significantly lower growth is expected in the Norwegian economy next year, Statistics Norway writes in a forecast.
“The state receives record high revenues from the oil and gas business, inflation is far above the inflation target, and there is high pressure in the labour market. The latter tends to coincide with economic upswings, but this is not the case now,” Thomas von Brasch from Statistics Norway explained.
“It is a complex picture. We expect a moderate downturn in the economy in the short term. The level of activity is nevertheless cyclically neutral and will continue to be so,” he added.
Energy prices to rise next year
Energy prices are set to shoot up at the beginning of next week, business and financial site E24 writes.
Cold weather, little wind production and maintenance of nuclear reactors in neighbouring Sweden are all expected to affect Norwegian prices.
“Cold weather has been reported. The combination of cold and little nuclear power is not the best combination,” Tor Reier Lilleholt from Volue Insight told E24.
“This becomes strained when it starts to drop below minus ten. In such a situation without enough capacity, prices can go uncontrollably high for individual hours,” he added.
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