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The government has strongly blocked price hikes next year. People will notice.

Finance Minister Trygve Slagsvold Vedum (SP) has introduced a huge cut of cheese in the public sector, writes BT commentator Hans K. Mjelva.

Hospitals and other services must be cut, unless Trygve Slagsvold Vedum finds an argument to increase spending.

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SSB increased on Friday the forecast of price growth for next year, from 4.5 to 4.9 percent. Prices are therefore likely to rise almost double what the government has set as a basis in the state budget.

When preparing the budget, the Finance Ministry estimated that prices would rise by 2.8 percent next year. Already when the budget was presented in October, it was clear that it was too low.

Now it seems the rift is getting even bigger. Rising prices will eat into the budget and force cuts.

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