Norway is a country praised for its supposedly successful welfare model and high ratings on the global happiness index. But now, a startling revelation from the Salvation Army suggests all is not as rosy as it seems.
Poverty is spiralling in the Scandinavian country, with the price of food rising by 33% in just three years.
As a result, more and more Norwegians are feeling the pinch in the run-up to Christmas. So much so that the Salvation Army will distribute food boxes to 1,400 families nationwide this week.
According to the organisation’s poverty index, 20% of Norwegians struggle financially.
“I never thought I’d become someone who needed help in this way, so for me it’s been a long journey. Just walking through the door,” biomedical engineer Tone Rose told Euronews. Ms Rose used to donate to the Salvation Army, now she receives its aid.
Most of those receiving assistance from the charity also receive benefits from the Norwegian Labour and Welfare Administration, but the agency claims that more assistance is required to alleviate poverty.
Norway’s food inflation rate is a lofty 4.2% over 12 months. According to the state’s figures, other sectors are seeing even higher inflation rates.
CPI data for the last year shows rental inflation at 4.5%, while energy prices have swelled by an eye-watering 8.7% in the last month.
As a result of the high inflation, interest rates in Norway remain at a 16-year high. The country’s central bank decided this week to keep rates at 4.5%.
It expects to cut interest rates three times next year, down from four.
Norges Bank Governor Ida Wolden Bache said: “The committee judges that a restrictive monetary policy is still needed to stabilise inflation around target, but that the time to begin easing monetary policy is soon approaching”.
