Historically high price on electricity
The price of electricity is at an historically high level, according to Statistics Norway. The increase largely contributes to an overall price inflation .
The cost of electricity and grid rental is 30.7 per cent higher than in June 2017, according to Statistics Norway. In June, prices for electricity rose by 9.9 per cent.
“Since July 2015, when electricity prices were at its lowest level, the price of electricity including network leasing has increased by about 90 per cent,” it’s stated on the agency’s websites.
The increased electricity prices account for a large proportion of the 2.6 per cent increase in consumer prices in the last year.
Low growth in food prices
According to Statistics Norway, the rise in the consumer price index over the last twelve months had been 1.6 per cent if there had been no increase in electricity prices and net rental.
Food prices only increased by 0.4 per cent in the same period, and Virke reports inflationary growth as unusually weak.
– The price increase this month was lower than expected, since price developments on food have been unusually weak for a long time. The price of the shopping cart is almost the same as it was 2 years ago. The rise in prices for food and beverages in the last two years has been weak at 1.2 per cent, says Ingvill Størksen, Director of Virke Grocery.
High producer prices
There has been a sharp rise in producer prices for power between May and June.
The increase is 19.4 for electricity producers, and SSB points to the dry and hot weather in recent months as a contributing factor.
“During June, the fill rate in Norwegian water reservoirs went from a normal level for this time of year to a lower level than the median for the period 1990-2017,” SSB writes.
More expensive industrial goods
Furthermore, Statistics Norway writes that we must return to 2011 to find more expensive producer prices for electricity than in June 2018. Statistics Norway also indicates an increase in prices for Norwegian industrial products.
Overall, these increased by 1.1 per cent from May to June, and by 8.5 per cent in the period between June 2018 and last June.
Price inflation for petroleum products and metals is the main reason for the recovery.
“If petroleum products and metals are ignored, industrial prices fell 0.5 per cent over the past month. The same two industries have been important for overall price growth in manufacturing over the last twelve months”, SSB writes.
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