Norway’s consumer price index (CPI), which measures inflation, increased by 6.8 percent between last month and July 2021, the latest figures from Statistics Norway (SSB) show.
There has not been higher growth in Norway since 1988. Significant increases in the price of food and fuel helped drive the inflation figures. From June to July, the price of food and non-alcoholic beverages rose by 7.6 percent.
“A historically high price increase for food and non-alcoholic beverages in July was clearly the most important reason for the rise in the consumer price index in July. We have never previously measured a similar price increase for food from one month to the next in the CPI,” Espen Kristiansen from Statistics Norway said of the figures.
The previous largest monthly increase in the price of groceries was in July 1981, when prices rose 5.3 percent. Over the last year, food has increased 10.4 percent.
Part of the explanation for the high increase in food last month was July is one of the two times a year when supermarkets have the opportunity to raise prices across the board following negotiations with suppliers. The other month supermarkets can make wholesale changes to their prices in February.
Fuel also saw a huge rise of 47.4 percent over the last 12 months, although the cost of petrol fell by 4.1 percent over the last month. The cost of goods and services has also contributed to the CPI rising 6.8 percent during the previous 12 months.
In a recent analysis, Consumption Research Norway (SIFO) at Oslo Metropolitan University concluded that one in three homes in Norway have worse finances now than they did in January this year.