The cost paid by consumers in Norway last month was 5.4 percent higher than prices in April 2021, according to data released by national agency Statistics Norway on Tuesday.
The rise in the consumer price index (CPI) over the last year is the biggest jump in prices since 2008, and higher inflation has not been measured in April since 1988, Statistics Norway said.
The consumer price index measures the changes in prices of goods and services purchased by households. Expenses that make up a more significant proportion of a household’s budget contribute the most towards the CPI.
Soaring airline ticket prices and rising energy costs were the biggest contributors to increasing inflation, Espen Kristiansen from Statistics Norway said.
Airline tickets have risen by 39 percent in price since March last year, while electricity costs increased by 14 percent. Food prices and the cost of eating out also rose.
“A good part of the price increase is due to higher prices for petrol and electricity, but other product groups are also rising. Food prices were higher than expected in April,” Kjersti Haugland, chief economist at DNB Markets, told public broadcaster NRK.
The war in Ukraine and the pandemic have contributed to rising costs.
The inflation figures are higher than economists had expected in advance and well above the targets of Norway’s central bank, Norges Bank, business and financial news site, E24 reports.
This could lead to the bank accelerating its plan to raise the key interest rate, meaning more expensive loan and mortgage repayments for consumers.
However, there may not be complete cause for concern, Harald Magnus Andreassen from Sparebank 1 Markets told E24.
“Norwegian price inflation is among the lowest we have seen. Wage growth is not lower than in other countries. Norwegian households are among those who have the least reasons to complain about inflation,” he told the site.