Inflation falls to 4.4 percent

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

The annual inflation rate in May 2023 was 4.4 percent, down from 8.3 percent in the previous quarterly Consumer Price Index report from February 2023.

The latest annual increase in consumer prices is mostly due to higher grocery prices and rising interest rates, while a reduction in fuel prices is keeping inflation in check.

Grocery prices in May 2023 increased by just over 11 percent, on average, from May last year, and by 1.4 since February 2023.

Within the groceries category, prices of vegetables have seen the biggest increase since the February report, going up by more than 6 percent.

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Vegetables are now about 18 percent more expensive than a year ago, while fruit prices have risen by 15 percent in the same period.

The annual inflation rate has now returned to the same level as in February 2022.

The Faroese annual inflation rate in May 2023 was somewhat lower than in the other Nordic nations and EU nations, with the exception of Denmark, which had a 2.9% inflation rate.

A comprehensive report on inflation will be available in English on Statistics Faroe Islands’ English-language news site  later this week.

Read the Faroese version of this article here.

More Faroese News in English.