. Increasing prices of food products is something that many people fear. Electricity, food, fuel, building materials, interest rates, everything has either increased significantly in price or will increase significantly in the coming months.
- This means that many will find it even more difficult to handle financially, says chairman of the board of directors Sverre Rusten in Fattighuset.
So far, autumn has been characterized by a sharp increase in electricity prices, and the upcoming winter is forecast to be very cold, which means higher electricity consumption for heating. At the same time, fuel prices are high getting closer NOK 20 per liter for both diesel and petrol. And this week started with the news that the price of food products will skyrocket. Industry giant Orkla attributes the price forecast to the large increase in commodity prices and shipping challenges during and after the pandemic.
"Sugar has increased by 40 percent, vegetable oil by 60 percent, shipping from China is ten times more expensive, and there are often delays," says Orkli CEO Jaan Ivar Semlitsch.
Fattighuset expects even longer lines
Norges Bank already announced an interest rate hike in September, and recently the Norwegian statistical office provided a partial explanation as to why the prices of timber and construction products had risen. The average price of timber increased by 32 percent in the third quarter.
In addition, the prices of tobacco and snus are likely to rise even further after the New Year, as the former Solberg government decided in the state budget. However, this is not the biggest worry among Norwegians, they are worried the most about rising electricity and food prices.
- The increase in electricity prices is serious enough in itself for many. But food is so basic that the new and soaring food prices will really bring more people financial hardship. This is really disturbing, says Sverre Rusten in Fattighuset.
When asked if he expects greater demand in Fattighuset, he replies that he expects there will be longer queues for various types of products in the coming months.
- We are dealing with a cooler season. Increased electricity and cold prices make it harder for many people. But not everyone who experiences poverty seeks help in centers like ours. Many suffer in silence, describes Rusten.
The increase in electricity prices does not matter much to many. This is related to the possibility of reducing heating or other ways of saving, but here too there are limits on what can be done to save. On the other hand, there are products like food where changing prices can be hard for many.
Low-income families are most worried and single people. There are too many who are struggling financially. What worries people the most is rapid price changes because you can't prepare for it.
Christian Poppe, a researcher at the SIFO consumer research institute in Oslo Met, points out that rising prices could have serious consequences for part of the population.
- In Norway, there are about 7,5-8 percent of people who have a very bad financial situation. They are in the lower segment of financial security. They are very sensitive to price fluctuations and are often struggling with debt already, says Poppe.
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Source: e24.no
