Inflation is slowing down

Consumer prices continue to grow, but this growth is now slowing down, reports Statistics Faroe Islands.

The annual inflation rate in the latest quarterly report from February was 8.3 percent, down from 10.1 percent in the previous report from November.

From February 2022 to February 2023, retail prices of groceries and non-alcoholic drinks increased by 13.3 percent.

Sweets now cheaper than healthier food

The biggest price hikes in the groceries category were for butter, margarine and cooking oil, which increased 27% in the past year.

Coffee, tea and cocoa prices rose by 20 percent, vegetables by 16 percent, and bread and cereal prices by 15 percent.

Prices of sugar and candy increased by 7 percent and soft drinks by 6 percent, which is significantly less than other food categories.

Relatively speaking, sweets and soft drinks are now cheaper than other grocery products.

Interest expenses contributed most to the overall price increase in the February report, increasing by 27.7 percent year-on-year.

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Rental costs went up 16.3 percent.

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Caption: 

Interest expenses have gone up by 27.7 percent and rental costs are up 16.3 percent in the past year. Archive photo: Tórshavn City Council

Electricity and oil prices have also increased.

Only district heating prices remain unchanged.

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Read the Faroese version of this article here.

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