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Inflation in Norway shows signs of slowing down

Frazer Norwell
Frazer Norwell - [email protected]
Inflation in Norway shows signs of slowing down
Inflation in Norway was lower in July than it was in July, the latest figures show. Pictured is the coffee aisle of a supermarket. Photo by Charles Gao on Unsplash

Norway’s consumer price index has increased 5.4 percent since July last year, according to the latest data. Yearly inflation is down one percentage point compared to the figures for June. 

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Between June and July this year, Norway’s consumer price index rose by 0.4 percent and was 5.4 percent higher in July than the same month a year before, figures from national data agency Statistics Norway show.

Food prices not growing as sharply this summer as the year before was one of the factors behind the drop in inflation. 

“Food prices had a historically high monthly change from June to July last year. We have not measured a correspondingly high growth in prices from June to July this year, which means that the twelve-month growth for food prices falls in July,” Espen Kristiansen from Statistics Norway said of the figures. 

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“We see the same effect for electricity prices. They fell somewhat more from June to July this year compared to the same period last year. This pulls the twelve-month growth down,” he added. 

However, food prices in Norway have still risen by 9.2 percent from July last year. Between June last year, to the same period this year, food prices increased by 13.7 percent. In July, the increased prices of meat, milk and cheese pushed up the cost of food. 

Core inflation, which excludes energy prices, food prices and tax changes, also fell in Norway. It was measured 6.4 percent, 0.1 percentage points higher than the estimate of the central bank, Norges Bank. 

Nordea Analyst Dane Cekov told Norwegian newswire NTB that it was likely that interest rates would be raised by 0.25 percentage points next week. 

Norway’s central bank has been increasing interest rates to try and curb inflation. 

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