Caption:
The Consumer Price Index (CPI) measures inflation as experienced by Faroese households in their daily living expenses. The latest CPI figures are from November 2023. Graphs: Statistics Faroe Islands
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Price growth is slowing down
Price growth is slowing down
Consumer prices have risen 17 percent over the past three years
The annual inflation rate has fallen to 2.8 percent
11.01.2024 - 05:30
Consumer prices are still growing, but the growth is slowing down, reports Statistics Faroe Islands.
Consumer prices increased by 2.8 percent from November 2022 to November 2023.
Higher mortgage and interest rates for households were the most important drivers of inflation in the past year.
Interest expenses for households increased by almost 69 percent from November 2022 to November 2023.
Grocery prices still rising
‘Food and non-alcoholic drinks’ make up the largest portion of the average Faroese household spending. Prices in this category continue to rise, though at a slower pace than in the previous two years, going up 5.8 percent in the past year.
Within the ‘food and non-alcoholic drinks’ category, prices of fruit, meat and bread have risen the most. Fruit went up by 9 percent, while meat, bread and cereal prices rose by about 6 percent.
The price of chocolate and other sweets has increased significantly more than in recent CPI reports, going up by more than 8 percent in the past year.
However, the price growth in milk, cheese and eggs has slowed down, with a 1-percent year-on-year growth.
Energy prices
An almost 14 percent drop since November 2022 in the price of liquid fuels, used for household heating, has helped keep the inflation rate in check.
District heating costs have remained unchanged since 2022, while electricity prices rose by just over 14 percent in 2023 compared to 2022.
Slower price growth than in other countries
The Faroese annual inflation rate in November 2023 was somewhat lower than in the other Nordic and EU nations, with the exception of Denmark, which registered a remarkably low rate of 0.6 percent.
Iceland had the highest annual inflation rate, at 7.7 percent, followed by Sweden (5.8 percent) and Norway (4.8 percent).
The annual price growth in the Faroes is slightly below the EU average of 3.1 percent.
For more details, visit Statistics Faroe Islands' English-language news site.
Read the Faroese version of this article here.
English version by prosa.fo.
More Faroese News in English.
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