Everyone is waiting for higher prices. New data from Norway reveals the scale of concerns
Expectations for inflation levels are rising in Norway. This is according to the latest survey by Norges Bank. Higher price dynamics are anticipated by economists, business leaders, labor market representatives, and households.
All interested parties believe that inflation will rise.
Fot. Adobe Stock, licencja standardowa
The survey covers forecasts for the next 12 months. The results for the second quarter are higher than the previous quarter. The data comes after a period of sharp increases in energy prices, against the backdrop of the war in Iran and the situation in the oil market.
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Economists expect prices to rise by 3.3 percent, which is 0.5 percentage points more than the previous quarter. Labor market representatives also indicate 3.3 percent, with an increase of 0.4 percentage points. The forecasts are higher than in the previous survey.
Business leaders expect prices of goods and services to rise by 4.1 percent, which is 0.2 percentage points more than the previous quarter. The survey is conducted four times a year. This time, inflation expectations increased in all surveyed groups.
Business leaders expect prices of goods and services to rise by 4.1 percent, which is 0.2 percentage points more than the previous quarter. The survey is conducted four times a year. This time, inflation expectations increased in all surveyed groups.
The Norwegian economy has received a new signal. Inflation expectations have risen in all groups.Photo: Adobe Stock, standard license
Everyone is waiting for higher prices. New data from Norway reveals the scale of concerns
Economists expect annual wage growth of 4.5 percent, which is 0.4 percentage points more than in the previous quarter. Labor market representatives give the same forecast, also with a 0.4 percentage point increase. Higher expectations are also visible among employee organizations.
Business leaders expect wage growth of 3.9 percent, which is 0.2 percentage points higher than before. Employee organizations indicate 4.5 percent, with their forecast up by 0.3 percentage points. Among households, most respondents also expect higher inflation than in the previous quarter.
Business leaders expect wage growth of 3.9 percent, which is 0.2 percentage points higher than before. Employee organizations indicate 4.5 percent, with their forecast up by 0.3 percentage points. Among households, most respondents also expect higher inflation than in the previous quarter.
The survey was published after a sharp rise in energy prices. The price of Brent crude oil on the spot market has risen by over 70 percent since the beginning of the year. According to sources, the reason is the war in Iran and the closure of the Strait of Hormuz, which halted 20 percent of global oil exports. In April, inflation in Norway fell to 3.4 percent and was slightly lower than expected.
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