Today in Norway: A roundup of the latest news on Friday
High inflation, and interest rates likely to increase beyond initial targets are among the important headlines from Norway on Friday.
Prices in Norway rose by 6.3 percent over the previous 12 months
Between February 2023 and the same month the year before, the consumer price index (CPI) rose by 6.3 percent, the latest figures from Statistics Norway (SSB) show.
“The most important reason why price growth continues to remain high is food prices. In addition, cars, rent and restaurant services are other important components that keep price growth,” Espen Kristiansen from SSB said of the figures.
However, the twelve-month growth in February is lower than the previous month, when the CPI was 7 percent. This is due to food prices not increasing as sharply between January and February compared to the same period in 2022.
“From January to February last year, food prices increased very much. This year, however, we measured a relatively modest rise in food prices from January to February. This meant that the twelve-month growth in February fell from the previous month,” Kristiansen explained.
Number of unprocessed cases at NAV has doubled
There are around 37,000 outstanding sick pay cases that staff at the Norwegian Labour and Welfare Administration (NAV) need to process manually. This is a doubling of outstanding cases requiring human input over the past 18 months.
Norwegian newspaper Klassekampen reports that the reason for the high number of unresolved cases is that NAV has been prioritising newer claims for sickness benefits.
NAV says that 95 percent of the unresolved cases have been in a pile for less than 66 weeks. Although the oldest case that needs manual input is from July 2019.
Delays in a new IT system mean that those who are refused sick pay and appeal face waiting times of around a year.
Norwegian Minister of Justice to consider stronger visa measures
Norway’s Justice Minister says the reintroduction of visa applications for visa-free countries that do little to help the Norwegian authorities when a citizen from their country has been residing in Norway illegally is a measure the government is considering.
“We must consider stricter measures against countries that do not cooperate in accepting their own citizens with illegal residence in Norway or Schengen. This could be reintroducing visa requirements for visa-free countries as a reaction to the country not cooperating on return,” she said in a government press release.
She also stated that the government feels the Dublin regulations, which determine which country should be responsible for refugees, should be tightened up.
Interest rates likely to rise further
A weak Norwegian krone and rising inflation mean that interest rates are likely to rise beyond previous targets set by Norway’s central bank, Norges Bank.
Analysts in Norway are now predicting a peak of between 3.5 and 3.75 percent, compared to the central bank’s forecast of three percent, Norwegian broadcaster TV 2 reports.
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Prices in Norway rose by 6.3 percent over the previous 12 months
Between February 2023 and the same month the year before, the consumer price index (CPI) rose by 6.3 percent, the latest figures from Statistics Norway (SSB) show.
“The most important reason why price growth continues to remain high is food prices. In addition, cars, rent and restaurant services are other important components that keep price growth,” Espen Kristiansen from SSB said of the figures.
However, the twelve-month growth in February is lower than the previous month, when the CPI was 7 percent. This is due to food prices not increasing as sharply between January and February compared to the same period in 2022.
“From January to February last year, food prices increased very much. This year, however, we measured a relatively modest rise in food prices from January to February. This meant that the twelve-month growth in February fell from the previous month,” Kristiansen explained.
Number of unprocessed cases at NAV has doubled
There are around 37,000 outstanding sick pay cases that staff at the Norwegian Labour and Welfare Administration (NAV) need to process manually. This is a doubling of outstanding cases requiring human input over the past 18 months.
Norwegian newspaper Klassekampen reports that the reason for the high number of unresolved cases is that NAV has been prioritising newer claims for sickness benefits.
NAV says that 95 percent of the unresolved cases have been in a pile for less than 66 weeks. Although the oldest case that needs manual input is from July 2019.
Delays in a new IT system mean that those who are refused sick pay and appeal face waiting times of around a year.
Norwegian Minister of Justice to consider stronger visa measures
Norway’s Justice Minister says the reintroduction of visa applications for visa-free countries that do little to help the Norwegian authorities when a citizen from their country has been residing in Norway illegally is a measure the government is considering.
“We must consider stricter measures against countries that do not cooperate in accepting their own citizens with illegal residence in Norway or Schengen. This could be reintroducing visa requirements for visa-free countries as a reaction to the country not cooperating on return,” she said in a government press release.
She also stated that the government feels the Dublin regulations, which determine which country should be responsible for refugees, should be tightened up.
Interest rates likely to rise further
A weak Norwegian krone and rising inflation mean that interest rates are likely to rise beyond previous targets set by Norway’s central bank, Norges Bank.
Analysts in Norway are now predicting a peak of between 3.5 and 3.75 percent, compared to the central bank’s forecast of three percent, Norwegian broadcaster TV 2 reports.
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