Manufactured prices are on the rise at a time when selling products made close to the consumer is in vogue, Tangen said.
In addition to this trend, known as nearshoring, “one new thing is the weather effect, meaning the link between weather and inflation,” he said, pointing to rising food costs.
“Olive oil, potatoes, meat, all these things drive inflation,” he explained. “What’s new is that (weather) is also affecting productivity.”
Tangen cited the current summer in Europe as an example.
“This year has been so hot that you can’t work at noon,” he said, also noting the increase in extreme weather events that weigh on tourism.
The month of July 2023 was marked by heat waves and fires in several countries and was the warmest month on record on Earth, according to the European Union’s Copernicus climate observatory.
Norway’s sovereign wealth fund is the world’s largest and at the end of June it was worth $1.46 trillion.