Cost of living up by 3.4 percent

Consumer prices increased, on average, by 3.4 percent in the past year, reports Statistics Faroe Islands.

The Consumer Price Index (CPI), consisting of the aggregate prices of 12 main categories of goods and services, increased from 121.6 in Q4 2020 to 125.8 in Q4 2021.

This annual change in the Faroes and in many other countries is the highest since the financial crisis 14 years ago.

Fuel prices play a large role

An 11.9-percent increase in the price of fuel for household use is the main reason for the overall price increase.

There was a price increase of 4.9 percent in the ‘transport’ category and a 4.1-percent increase in the ‘hotels and restaurants’ category.

Liquid fuel – household fuel and automotive fuel – make up a relatively significant portion of the total consumption of an average Faroese household and thus have a relatively large effect on the total CPI.

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Liquid fuel prices have been on a steady increase in the past year following a relatively large price drop in the first year of the Covid pandemic.

Household fuel prices in the Faroes increased by 41 percent in the past year. The average liquid fuel price increase for the 27 EU member states was 57 percent in the past year.

Read more about the CPI here (in Faroese).

Read the Faroese version of this article here.

More Faroese News in English.