Norway Why Is Wage Growth Still So High

Norway's wage growth remains elevated near 5% due to the 'frontfag' bargaining model and sector-specific labour tightness. This persistence suggests further interest rate hikes from Norges Bank.

Key Takeaways

• 1.Norway's wage growth remains sticky near 5% due to the 'frontfag' collective bargaining system.
• 2.Tightness in specific sectors like oil services and hospitality is putting upward pressure on wages.
• 3.Goldman Sachs expects Norges Bank to hike rates to 4.5% in September.

Table of Contents

• European Daily: Norway—Why is Wage Growth Still So High?