More expensive food and higher electricity prices contributed to core inflation rising by 1.1% in July compared to the same time last year, according to figures from Statistics Norway (SSB).
At the same time, total inflation increased by 3% in the same period, the SSB’s figures show on Tuesday. In contrast to core inflation, total inflation is adjusted for tax changes and does not include electricity prices and petrol prices.
Total inflation rose by 0.9% from June to July. According to the SSB, food prices were the largest contributor to the rise, with an increase of 3.1% in July, after several months of falling prices.
“The food and drink prices usually follow a steady pattern throughout the year, with price declines in typical offer/discount periods such as Christmas, Easter, and the start of school, and price adjustment at other times of the year. The price increase from June to July is lower than the average increase over the last five years,” Ingvill Størksen, director of Virke grocery, stated.
The spike in food prices comes after several months of falling prices.
In the last twelve months, food and drink prices have fallen by as much as 2.8%. In the same period, the price of goods and services has generally increased by as much as 3%, according to Størksen.
Decrease in ferry fares
According to the SSB, increased prices for electricity, flights, and fuel also contributed to the rise in the CPI.
On the other hand, prices for passenger transport by boat showed a decrease of 14.1%, mainly due to a decrease in the ferry fares from July.
Home textiles and shoes, as well as falling prices for toll passes, also helped to curb the rise.
Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance
Do you have a news tip for Norway Today? We want to hear it. Get in touch at firstname.lastname@example.org