Food and energy prices drive unexpectedly high Norwegian inflation figures
The latest inflation figures in Norway exceeded analysts’ forecasts, thanks partly to steep rises in food and electricity prices over the last 12 months.
Norway’s consumer price index (CPI) rose by seven percent between January 2023 and the same month a year before, the latest figures from the national data agency Statistics Norway (SSB) show.
This is up considerably from the 5.9 percent rise in inflation between December 2022 and the same period a year prior. Additionally, the figure of seven percent was higher than analysts originally forecast.
Rising food and energy prices, two things consumers in Norway have grappled with over the past 12-18 months, were among the main factors contributing to inflation.
“The most important reasons for the high price increase are still the development in electricity and food prices. In January this year, the prices of cars also increased significantly due to a tax change,” Espen Kristiansen from Statistics Norway said.
Despite energy prices being 10 percent lower in December 2022 compared to January 2023, energy prices rose between the beginning of 2022 and the beginning of this year by 15.4 percent.
The twelve-month CPI, when adjusted for tax changes and energy prices deducted, was 6.4 percent. This is the highest version of the CPI, excluding taxes and electricity, that Statistics Norway has ever recorded.
From January last year to January this year, the prices of food and non-alcoholic beverages rose by 12 per cent. From December to last month, food prices increased 1.6 percent.
“It is not unusual for the prices of food and drinks to increase in January after offers on a number of typical Christmas items in December,” Kristiansen said.
The government’s electricity subsidy scheme has managed to push inflation down. Without the current support, the CPI would be 8.1 percent, according to Statistics Norway.
Comments
See Also
Norway’s consumer price index (CPI) rose by seven percent between January 2023 and the same month a year before, the latest figures from the national data agency Statistics Norway (SSB) show.
This is up considerably from the 5.9 percent rise in inflation between December 2022 and the same period a year prior. Additionally, the figure of seven percent was higher than analysts originally forecast.
Rising food and energy prices, two things consumers in Norway have grappled with over the past 12-18 months, were among the main factors contributing to inflation.
“The most important reasons for the high price increase are still the development in electricity and food prices. In January this year, the prices of cars also increased significantly due to a tax change,” Espen Kristiansen from Statistics Norway said.
Despite energy prices being 10 percent lower in December 2022 compared to January 2023, energy prices rose between the beginning of 2022 and the beginning of this year by 15.4 percent.
The twelve-month CPI, when adjusted for tax changes and energy prices deducted, was 6.4 percent. This is the highest version of the CPI, excluding taxes and electricity, that Statistics Norway has ever recorded.
From January last year to January this year, the prices of food and non-alcoholic beverages rose by 12 per cent. From December to last month, food prices increased 1.6 percent.
“It is not unusual for the prices of food and drinks to increase in January after offers on a number of typical Christmas items in December,” Kristiansen said.
The government’s electricity subsidy scheme has managed to push inflation down. Without the current support, the CPI would be 8.1 percent, according to Statistics Norway.
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.