Why the high prices in Norway?

Модератор: zlata

Why the high prices in Norway?

Сообщение HainanWel.com(e)! » 16 июн 2016, 14:44

First, let's go over the average prices for the most common items that may be required for travelers or for which one can judge the level of prices in the country. For convenience, I have the prices in crowns and in rubles. With the rate of the Norwegian krone in early June had been created some sort of nonsense. When we crossed the border of Finland and Norway, one Norwegian krone (NOCs) cost 5.8 rubles. Then the rate began to decline gradually, and three days ago, fell as much as to 5.48 rubles per crown. In my country, for the sake of simplicity, we have multiplied the prices in crowns to 6. In this post I'm going to assume the price at the rate of 5.8 rubles per crown. So there you go:


95 liters of gasoline - about 16 NOCs (93 rubles). Locals record was recorded in the form of price 17 CZK - 99 rubles.

A liter of diesel fuel - about 14.5 NOC (84 rubles)

In order for you to feel the full extent of: filling two cars ŠKODA Yeti to full tanks (fuel level is somewhere in the red zone) cost NOC 1500 = 8700 rubles

Loaf of bread in their original packaging - 23 NOCs (133 rubles) in the hypermarket and 30 NOCs (174 rubles) at the gas station. In stores you can find bread and 47.5 of the NOC (276 rubles !!!)

Milk liter package - NOC 18-22 (104-128 rubles)

Eggs in a package of 6 pieces - 25 kroons (145 rubles)

Cheese 150 grams per pack - NOC 23-27 (134-157 rubles)

Meat beef (sirloin, tenderloin) - NOC 289 per kilogram (1676 rubles!). We have for this money you can buy the whole "leg" jamon from Spain :)

Pork fillet - NOC 99-140 per kilogram (574-812 rubles)

Type sausages Frankfurters 5 pieces per pack - NOC 29-33 (168-191 rubles)

HEINZ ketchup 50ml - 27 kroons (157 rubles)

Tea Twinings Earl Grey 25 tea bags per box - 42 NOCs (244 rubles)

Bounty and Twix Bars in an extended package - 18 NOCs (104 rubles)

cereal box Kellog`s Corn Flakes 600 grams - 24 NOCs (140 rubles)

Apples - NOC 20 per kilogram (116 rubles)

Oranges - NOC 28 per kilogram (162 rubles)

Bananas - NOC 16-22 per kg (93-128 rubles)

Pineapple - 24 NOC Unit (140 rubles)

Orange juice in a liter package - from 24 to 37 NOCs (139-215 rubles)

0.5 cans of beer - from 20 to 40 NOCs in hypermarkets (116-230 rubles)

A bottle of Coca Cola 0,5 liters - 17 NOCs (97 rubles)

Bank Energy Burn 0,48 liters: hypermarket 23 NOCs (134 rubles), gas stations and small stores 35 NOCs (203 rubles)

Chips for the great package: from 20 NOCs for mediocre to 35 NOCs for good (116-203 rubles)

Museums visited by members of the expedition: from 50 to 120 NOCs (290-700 rubles). The most expensive museum (120 CZK) was Lofotr Viking Museum in the Lofoten Islands.

Prices for accommodation in camping, you can see in my post Camping and hotels in Norway. The average house in the camp for four without shower and toilet costs about 500 crowns (2900 rubles)

The high prices in Norway

It happened to come in Norwegian McDonald`s. Glance searched the price for Big Mac - NOC = 89 516 rubles (correction from readers: this is the price of a Big Mac with fries and a drink, and the sandwich costs 56 SEK - 324 rubles). By that time I had already difficult to surprise the prices, but the price of a Big Mac still surprised me. And along with this thought, the term "Big Mac Index" (Big Mac Index), which was used in the course of the economy and market pricing (I have the education manager and economist, by the way :)). Now, the Big Mac index, in other words, shows the real value of the currency, based on the cost of the popular sandwich McDonald`s. Why Big Mac? Well, it is believed that this product is the same in any country, and its value is the cost of ingredients produced in this country. The Economist magazine publishes an annual index Big Mac in different countries. I will not ship the theory about how this index is considered to be only a couple of facts. So, the Norwegian krone on this index - the most overvalued currency in the world, its "real" value should be below 67%. But the Russian ruble is considered, on the contrary, undervalued by 34.8%, for the Big Mac have cost twice cheaper than in the United States despite the fact that the dollar we have almost 35 rubles per dollar (this year, the data for January).

The high prices in Norway

Alcohol and cigarettes - is the most expensive in Norway of the products. Alcohol strength of more than 4.7% is sold only in special shops Vinnmonopolet, which in very few cities. They are open from 10 to 16/18, or up to 15 on Saturday. Beer is sold in retail stores up to 20 hours. A liter of distilled spirits - from 440 kroons (2550 rubles) and above. Cigarettes in-store or at the box office, or in special machines, a pack of cigarettes costs more than SEK 100 (580 rubles).

The high prices in Norway

Personal services sector is also one of the most expensive in the world. Normal hair cut will cost 500-600 kroner (about 3000 rubles). Locals common practice to refer to the barbers, cosmetologists and dentists outside Norway (eg during holidays).

Medicine in Norway and Norwegians almost free. Every resident of Norway, in the territory of the country for permanent residence or a residence permit automatically receive health insurance. Initial reception of the doctor, tests, examinations and medicines for the treatment of non-serious illnesses is paid out of pocket. Once the amount of treatment costs exceed $ 300 in a calendar year, further medical care and medicines in this year already by the state. If there was something serious that requires treatment in a hospital or surgery, all covered by insurance. Treatment of the insurance at the highest level, just try to write early, because there is a queue for treatment.

salary

But what can we say about the Norwegian wage. There is information three years ago that the full working week, anyone can get at least 14,500 kroons (more than 79.000 rubles at today's exchange rate). We talked with road construction workers from Poland, their salary is approximately 2,000 euros a month - more than 90,000 rubles. And the average wage in the country, according to sources on the Internet, about 40,000 kroons or more than 230,000 rubles. With more than about six times the average salary for Peter. See how it all fits together :)

There are recent statistics from the Norwegian Central Bureau of Statistics (Statistisk Centralbyrå). According to the survey, in Q3 2013 the average wage in the country amounted to 41,000 kroner (220,000 rubles). Wages for persons working under an employment contract, a little higher - 42.500 CZK, from those who are working part time or not going on the staff - 33.800. This data is for men, women receive less. Less all get in hotels and restaurants - about 28.400 CZK, most top managers (CEOs) - more than 70,000 kroons. As you can see, the spread between the highest and lowest salaries low. Here the average salary of employees in different areas:
- Representatives of academia (research institutes, university staff, scientists) - about 55,000 kroner
- Employees of IT and communications - 52.500 CZK
- Teachers of Norwegian universities - 47.000 CZK
- Municipal workers (all who work in public schools, hospitals, etc.) - 39,300 CZK
- Teacher in high school and a kindergarten - 36.200 CZK
- Working in factories or workshops, builders - 35.000 CZK
- Office workers - 35.000 CZK

All salaries listed above without tax deductions. To obtain the amount of "hands on", you need to subtract an average of 30-33%. Another suggested that if the income is below the minimum tax deductions, the tax does not have to pay.

The high prices in Norway


So why the high price?

And now I try to answer the question: why in Norway such high prices? To begin, we asked this question a local man - a man of 50 years. He, in characteristic manner to people his age, said that to blame the oil. Like, everything was fine, the prices did not differ from these in central Europe, while in the 50-60-ies of the last century, the level of oil production is not increased several times, and in the oil and gas industry have become massively cross specialists in other fields. Still, after all wages in the industry are among the highest, and not only in Norway. Well, and then there was an increase wages in other areas to the point that doctors working in the country, teachers and representatives of other relevant professions. A raise of salaries led to an increase in prices for all ...

The high prices in Norway

Our interlocutor, in part, was right, but did not say the most important thing: it is a consequence of strict state regulation of all that you can. Let's start with taxes. The country has a decent income tax rate. On average, working in Norway people give to the budget 30-33% of salary. The tax rate is progressive, rich people can give State nearly half of their income! Lowest tax rate of approximately 20%.

Furthermore, the country has a strong program for the social protection of the population. Incoming funds from the budget tax return to the population in the form of pensions, child allowances, compensations for medicine costs, unemployment benefits and other social payments.

The state also regulates the minimum wage. This is what I have written above.

And now I am getting smoothly to the price issue. The state strictly regulates both the tax on the sale of goods produced in Norway, and customs duties on goods imported, including from neighboring EU countries. Size taxes and fees badsome, I must say. Local, in general, do not consider the prices high in their country, but many prefer to buy things via the Internet from other countries goods worth up to CZK 200 duty-free. Fuel prices are also regulated by the state, and from the sale of fuel taxes go into a special savings fund, funds from which will be used when the oil runs out in the country. Tax revenues to the state budget from the sale of a larger volume of oil used for various social programs and subsidies in other types of activities: health care, roads, agriculture, fisheries, forestry and others. This is where exactly the government thinks of its citizens ...

Still it is worth mentioning the fact that Norway is not a member of the European Union. Several times a referendum on the inclusion of Norway to the EU, Norway and both times said solid NO. The entry of the country into the EU would mean the need to share the country's good with all EU countries, but also the obligation to consume cheaper imported products, imported duty-free. For Norway, it has no meaning, has built a system without it running smoothly and reliably. But, fortunately, in the Schengen Union, Norway has entered, so to visit them, we can call in any country with a visa "Schengen".

The high prices in Norway

As a result of these actions by the government of Norway came in first place in the world in terms of quality of life: education level of the population, the level of financial security and longevity. When preparing this post, I read a lot of information about how comfortable to live in Norway. And not only because wages corresponds to the level of prices. Many operations are automated in the home, no queues and unnecessary bureaucracy, even a tax return for residents fills agency, it can be viewed electronically and pay without leaving home. And if you want to relax in the hot countries - please, Spain with the prices twice below :)
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