In this study we compare the predictions for the income year 2022 given in December 2021 with the updated predictions given in September 2022. We find that net expenses for the households on average has increased by NOK 18,000. We analyze distributional effects for the total increase in expenditures, as well as separately for food, electricity, fuel, and interest payments. When measuring the total increase in expenditures as a share of the disposable income, we find that the burden is rather evenly distributed. However, we see somewhat higher shares at the low end of the income distribution.
Increased expenditures for the households – who bears the largest burden?
Norwegian households have experienced unexpected price increases during 2022 on important goods, such as electricity and fuel, and the interest rate has been raised more than expected.
Published: 9 November 2022