What will be cheaper and more expensive in Norway in 2024?
Norway is known for its high prices. The cost of some essentials should actually fall next year. However, many things will become more expensive.
Kindergarten to become cheaper
Parents will see their childcare bills slashed at the beginning of August 2024. The reason for this is that the maximum price for a kindergarten place, excluding food and other costs, will be lowered to 2,000 kroner per month.
This change can save families with one child up to 12,000 kroner per year and applies to both private and public kindergartens.
When the change comes into practice, the maximum price a family will pay for kindergarten a month will be 3,400 kroner – excluding other costs such as food.
This is because a discount is applied to the second child of the same family in a kindergarten. A family's third child and onwards receive a free space if they attend the same kindergarten as their siblings at the same time.
Only a few years ago, the maximum price for just one child was close to 3,400 kroner per month.
Rural areas will see an even lower cap of 1,500 kroner per month.
Online shopping could go up
When ordering from foreign stores not signed up for the VOEC (VAT on E-commerce) scheme will need to go through customs.
Under the outgoing rules, orders under 350 kroner in value pass through customs without duty and VAT being added.
The changes won't affect items bought from retailers that participate in the VOEC scheme. The new rules take effect from January 1st.
Alcohol and tobacco prices to rise
The cost of tobacco and alcohol will increase next year due to taxes.
The alcohol tax will increase by 3.8 percent. The tax on cigarettes will increase by 4 percent.
Meanwhile, the price of snus will see the biggest increase. Taxes on snus will go up by 4.3 percent.
Airfare will become more expensive
Flying in and out of Norway will likely become more expensive next year. This is because the fees charged to airlines to use Norwegian airports will be increased to help keep state-owned airport operator Avinor afloat.
Industry experts believe this will lead to increased airfares as the higher costs for airlines will be passed onto passengers.
This may be offset by a reduction in the air passenger tax. The air passenger tax is directly applied to tickets and costs 80 kroner for flights within Europe and 320 kroner for flights outside Europe.
Cost of travelling to also change
Norway's weak krone has dominated the headlines this year. Travelling will either get cheaper or more expensive depending on whether you will be travelling into or out of Norway.
The Norwegian krone isn't expected to strengthen significantly next year. This means visitors can enjoy favourable exchange rates.
However, those travelling out of Norway will suffer from a worse exchange rate. A weak exchange rate will also impact the broader cost of living.
Exchange rates cause a lot of inflation in Norway due to the sheer number of goods imported from abroad.
Interest rates expected to fall
Loan and mortgage repayments could get cheaper towards the end of next year. While interest rates will likely peak in 2023, one of Norway's largest banks expects them to fall towards the end of 2024.
However, the rate cut isn't expected to happen until towards Christmas 2024.
Certain foods could soar in price
In order to protect Norwegian-grown foods, the duty on imported vegetables will increase next year.
This means the price of iceberg lettuce, beetroot, turnips and potatoes could all increase next year.
It is estimated the cost of potatoes could even double per kilo.
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Kindergarten to become cheaper
Parents will see their childcare bills slashed at the beginning of August 2024. The reason for this is that the maximum price for a kindergarten place, excluding food and other costs, will be lowered to 2,000 kroner per month.
This change can save families with one child up to 12,000 kroner per year and applies to both private and public kindergartens.
When the change comes into practice, the maximum price a family will pay for kindergarten a month will be 3,400 kroner – excluding other costs such as food.
This is because a discount is applied to the second child of the same family in a kindergarten. A family's third child and onwards receive a free space if they attend the same kindergarten as their siblings at the same time.
Only a few years ago, the maximum price for just one child was close to 3,400 kroner per month.
Rural areas will see an even lower cap of 1,500 kroner per month.
Online shopping could go up
When ordering from foreign stores not signed up for the VOEC (VAT on E-commerce) scheme will need to go through customs.
Under the outgoing rules, orders under 350 kroner in value pass through customs without duty and VAT being added.
The changes won't affect items bought from retailers that participate in the VOEC scheme. The new rules take effect from January 1st.
Alcohol and tobacco prices to rise
The cost of tobacco and alcohol will increase next year due to taxes.
The alcohol tax will increase by 3.8 percent. The tax on cigarettes will increase by 4 percent.
Meanwhile, the price of snus will see the biggest increase. Taxes on snus will go up by 4.3 percent.
Airfare will become more expensive
Flying in and out of Norway will likely become more expensive next year. This is because the fees charged to airlines to use Norwegian airports will be increased to help keep state-owned airport operator Avinor afloat.
Industry experts believe this will lead to increased airfares as the higher costs for airlines will be passed onto passengers.
This may be offset by a reduction in the air passenger tax. The air passenger tax is directly applied to tickets and costs 80 kroner for flights within Europe and 320 kroner for flights outside Europe.
Cost of travelling to also change
Norway's weak krone has dominated the headlines this year. Travelling will either get cheaper or more expensive depending on whether you will be travelling into or out of Norway.
The Norwegian krone isn't expected to strengthen significantly next year. This means visitors can enjoy favourable exchange rates.
However, those travelling out of Norway will suffer from a worse exchange rate. A weak exchange rate will also impact the broader cost of living.
Exchange rates cause a lot of inflation in Norway due to the sheer number of goods imported from abroad.
Interest rates expected to fall
Loan and mortgage repayments could get cheaper towards the end of next year. While interest rates will likely peak in 2023, one of Norway's largest banks expects them to fall towards the end of 2024.
However, the rate cut isn't expected to happen until towards Christmas 2024.
Certain foods could soar in price
In order to protect Norwegian-grown foods, the duty on imported vegetables will increase next year.
This means the price of iceberg lettuce, beetroot, turnips and potatoes could all increase next year.
It is estimated the cost of potatoes could even double per kilo.
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