The Norwegian Technical Calculation Committee for Wage Settlements (TBU) expects that food price inflation will be about 3% higher than initially forecasted in February.
On Monday, the TBU announced the final calculations for wage and price growth in 2022, and food prices will contribute to rising inflation, E24 writes.
The TBU pointed out that international wheat prices at the end of February and the beginning of March have skyrocketed from an already high level due to the war in Ukraine.
“On an uncertain basis, it is estimated that Norwegian food prices, as measured in the consumer price index, will rise between 4 and 5% in 2022,” the TBU noted in the report. That is about 3% higher than the basis for the price estimate in the preliminary report from February.
Food prices
At the same time, the TBU pointed out that Norway is less affected by high food prices internationally than many other countries in Europe due to its agricultural policy, which, among other things, shields food prices from international price fluctuations.
Nevertheless, the report emphasizes that the uncertainty for 2022 is “extraordinary, especially related to the war in Ukraine, the sanctions against Russia,” and their consequences.
Source: © NTB Scanpix / #Norway Today / #NorwayTodayNews
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