Cost of living up by 3.1 percent

Average consumer prices in the Faroes increased by 3.1 percent from a year ago. Increasing oil prices are the main reason for the price hike, reports Statistics Faroe Islands.

The Consumer Price Index (CPI) is made up of 12 main categories of goods and services. The effect of each category on the overall price index is weighted according to consumption levels.

One year ago, the CPI was at 121.2. In the third quarter (Q3) of 2021 it was 124.9. This is an increase of 3.1 percent over the past year and a 0.3-percent increase compared to Q2 2021.

Compared to this time last year, prices in ten out of the 12 main commodity groups have gone up. Prices in the ‘groceries and non-alcoholic drinks’ and ‘education’ categories have gone down slightly.

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The ‘housing’, ‘transport’ and ‘hotels and restaurants’ groups saw the highest price increase.

For about four years prior to the Covid pandemic, the annual changes in the overall CPI in the Faroes and throughout most of Europe were between 1 percent and 2 percent. The onset of the pandemic led to a largely unchanged annual price trend throughout most of last year.

The latest figures show a return to a relatively high price increase in the Faroe Islands and throughout most of Europe.

We are now seeing the biggest annual CPI increase since the financial crisis 13 years ago.

Read the Faroese version of this article here.

More Faroese News in English.