The consumer price index (CPI) rose 3.5% from October last year to October this year. The most important reason for the increase is the spike in electricity prices, according to Statistics Norway (SSB).
“By far, the most important contributor to the increase in the CPI over the last twelve months is the historically high electricity prices. From October 2020 to October 2021, the prices of electricity, including grid rent, rose by 79.2%,” senior adviser Ragnhild Nygaard at the SSB noted.
At the same time, food prices have been helping to dampen the rise in the last twelve months.
Food and non-alcoholic beverages
For food and non-alcoholic beverages, prices fell 4% from last year’s October to the same month this year. That is the largest fall in food and beverage prices since the VAT rate was adjusted down in 2001, Virke states.
“This shows that tough competition in the grocery market benefits consumers. This is important for households, especially when electricity is more expensive than normal,” Jarle Hammerstad of Virke noted.
Core inflation, the CPI-ATE, increased 0.9% in the same period, down from 1.2% last month.
Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance
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