Price growth in Norway in 2020 was the lowest in the last eight years

The consumer price index in Norway rose by 1.3% in 2020. Low electricity prices slowed down inflation.

An increase of 1.3% is the lowest inflation in Norway since 2012, writes Statistics Norway (SSB).

The main reason for the low price growth is not the coronavirus pandemic, but rather because electricity prices have been very low throughout the year.

At the same time, food prices rose by 3.7% from 2019 to 2020, well above the average price increase and the highest growth in eleven years.

Fruit and vegetables see strong price growth

The SSB noted that there might be several reasons for the rise in food prices, such as increased prices from suppliers, effects from the agricultural settlement, and higher prices for imported food. 

At the same time, it is uncertain how reduced cross-border trade and the fact that Norwegians visited bars and restaurants less in 2020 may have impacted the inflation.

Fruits and vegetables had an exceptionally high price growth in 2020, with 8.1% and 5.5%, respectively. 

Most of the fruit sold in Norway is imported, so the low krone exchange rate may have contributed to the large price increase.

Imported vegetables may also have been affected by the low krone exchange rate, but many vegetables are also produced in Norway.

Electricity prices skyrocketed in December

In December, inflation increased by 1.4% compared with December 2019. From November to December last year, prices rose by 0.4%.

A sharp rise in electricity prices towards the end of the year contributed to inflation in December, where electricity, including grid rent, had a price increase of 17.2%. 

Prices for electricity and grid rent were still 21.1% lower in December 2020 than in December 2019.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayNews

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