Norway’s consumer price index has risen by 5.1 percent from November last year to the same month this year. This is the highest twelve-month growth in prices since October 2008, according to figures from Statistics Norway.
The consumer price index (CPI) is a way of measuring the cost of goods and services, such as food and utilities, over a period of time expressed as a percentage.
Rental prices, electricity, food, clothes and the cost of a trip to the hairdressers are examples of things measured by the CPI.
One of the main driving factors in the rise is soaring energy prices in Norway.
“We must go 13 years back in time to October 2008 to find a corresponding twelve-month growth in the CPI. Not surprisingly, high electricity prices contribute to the upswing,” Trym Kristian Økland from Statistics Norway explained.
Since November 2020, electricity prices, including grid rent, have risen by 123.5 percent, meaning energy costs contributed to 3.3 percent of the more than five percent growth in the CPI.
However, there is some good news for households as the price of food and non-alcoholic drinks pulled in the opposite direction, trending downwards by 3.6 percent.
The reason for food prices falling was the removal of the sugar tax, Økland said.
Core inflation, which is adjusted to exclude the cost of food and energy, rose by 1.3 percent. This exceeded the expectations of Norway’s central bank, Norges Bank, which expected a core inflation figure of 1.1 percent.
Additionally, core inflation exceeding estimates is usually an indicator for financial institutions that interest rates should be raised. Throughout the autumn and winter, Norges Bank has said that it is planning to raise interest rates by 0.25 percent in December, making loans and mortgages pricier for households.