The price level in Norway viewed from abroad has decreased in the last two years.
In 2013, the general price level in Norway was 55 per cent higher than the average price level in the 28 EU countries. In 2015, the price level was markedly lower, at “just” 37 per cent above the EU28 level.
In 2015, Norway’s price level for Household Final Consumption expenditure (HFCE) was 37 per cent above the average price level of the 28 EU countries (EU28=100). Switzerland was the most expensive country in the survey, at 63 per cent above EU28. Norway and Denmark had the same price level in 2015, while the price level of Sweden and Finland was about 12 per cent lower.
The reason behind the lower Norwegian price level over the last two years is the weakened Norwegian currency against the euro. In 2013, the exchange rate (yearly average) of the Norwegian krone against the euro was NOK 7.81. In 2015, the Norwegian krone was considerably weakened, and the exchange rate (yearly average), was NOK 8.95. This represents a difference of about 15 per cent, which directly affects the Norwegian price level viewed from abroad.
Source: SSB / Norway Today
