Prices slow down but still higher than a year ago

Consumer prices remain high, but price growth is coming down, reports Statistics Faroe Islands.

The annual inflation rate topped at 10.1 percent in the fourth quarter (Q4) of 2022, dropped to 8.3 percent in Q1 2023 and reached 4.4 percent in Q2 2023.

Consumer prices are divided into three main consumer commodity groups: ‘food and non-alcoholic beverages’, ‘clothing and footwear’ and ‘furnishings and household equipment’.

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Retail prices in ‘food and non-alcoholic beverages’ went up 11 percent from Q2 2022 to Q2 2023.

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Retail prices in ‘furnishings and household equipment’ increased by 9 percent from Q2 2022 to Q2 2023.

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Retail prices in ‘clothing and footwear’ went up 1 percent in the past year.

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Data from other countries indicate that the tide is turning on consumer prices, says Niels Winther, CEO of the House of Industry.

“Production costs in many commodity groups are coming down. It takes a while for this to be reflected in consumer prices, so it is difficult to predict inflation rates for next year. But it looks like the tide is turning.”

Read the Faroese version of this article here.

English version by prosa.fo.

More Faroese News in English.