Inflation well below EU average

The recent dramatic rise in gas and electricity costs has affected daily life in mainland Europe much more than in the Faroes, writes the House of Industry.

The Faroese annual inflation rate reached 7.3 percent in June, compared to a 9.6-percent average for the 27 EU member nations, i.e. 2.3 percent lower than the EU average inflation rate.

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According to the House of Industry, the main reason why the Faroese inflation rate is lower than the EU average is the dramatic rise in gas prices, which has had a much greater effect on mainland Europe because Faroese households barely use any gas at all.

Another reason is that public energy supplier SEV has managed to lock in its electricity prices for a long period.

Read the Faroese version of this article here.

More Faroese News in English.