Prices have increased by 4.8 per cent in one year, according to figures from Statistics Norway. Price growth is historically at a record high level, but the figure is lower than in previous months this year. The price increase was also lower than Norges Bank envisioned, which expected a price increase of 6.1 per cent. The consumer price index (CPI) measures the annual price level of consumer products. It shows price trends for goods and services that households consume. In this way, this is a measure of inflation in the Norwegian economy. Consumer price index (CPI) Shows how the prices of the goods and services that private households demand change. In other words, the CPI shows changes in the consumer prices of goods and services. The consumer price index is usually compared with consumption the previous year. The goods and services that accounted for the largest part of the household budget receive the greatest value. CPI is often used as a measure of inflation. Statistics Norway calculates the consumer price index. Food prices go up As far as the prices of food are concerned, they have risen by 9.3 per cent in the last twelve months. It is fruit, vegetables, bread and meat that have risen in price the most since last year. – Food prices are still the biggest contributor to overall price growth being as high as it is, says Espen Kristiansen in Statistics Norway. Food prices in August were 9.3 per cent higher than they were a year ago. INCREASED PRICES: Fruit, vegetables, bread and meat are the products that have risen in price the most since last year. Photo: Simon Skjelvik Brandseth / news – Will fall Based on both what we produce in Norway and what we import, it seems that price growth will fall a good deal, explains Marius Gonsholt Hov at Handelsbanken. He believes that there will not be as strong growth in food prices in the future. In July, the price increase in food prices was over 13 per cent. In the last four weeks, food prices have fallen by 0.8 per cent. Now everything indicates that the peak of the rise in food prices has been reached, says Hov. – The positive thing here is that we will not see the violent increase that we saw earlier this summer. If we look ahead, it suggests that growth in food prices will continue to fall, says the economist. HIGH PRICES: Food prices mean that price growth is high, according to Statistics Norway. Photo: Benjamin Fredriksen / news Cheaper electricity It is the development in electricity prices that is pulling the twelve-month growth down, according to Statistics Norway. – Last year we measured high price growth for electricity from July to August. This year the situation is the opposite. Electricity prices fell in most parts of the country from July to August, says Espen Kristiansen in SSB. – This is an important reason why the twelve-month growth in the CPI is falling, says Kristiansen. The prices of electricity including network rental fell by 10.9 per cent from July to August this year. This means that electricity prices are 26.1 per cent lower in August 2023 compared to August 2022. DRIVING DOWN: Electricity prices mean that price growth is lower than earlier this year. Photo: Marius Helge Larsen / NTB – Good for the wallet Norges Bank has raised the key interest rate quickly to try to curb price inflation and bring it down to the target of 2 per cent. The key interest rate is currently at 4 per cent, with an expected interest rate peak of 4.25 per cent. – The fact that overall price inflation is falling, and we are now likely to have higher wage growth than price growth going forward, is good for the wallet. It strengthens purchasing power, explains chief economist Marius Gonsholt Hov. Chief economist Marius Gonsholt Hov believes Norges Bank’s interest rate increases will reach their peak next week. Photo: Mathias Moene Rød / news Economist: The next interest rate hike could be the last Core inflation, which is calculated without electricity prices and changes in taxes, is what Norges Bank is most concerned about when they set interest rates. This ended at 6.3 percent. These figures were lower than expected. Economists therefore believe that the next interest rate hike, set for Thursday 21 September, will be the last. – Today’s inflation figures make us confident that next week’s interest rate hike by Norges Bank will probably be the last, writes Nordea in a press release. – Norges Bank has long been surprised that the inflation figures have been a good deal higher than they had imagined. This has meant that they constantly have to adjust their own interest rate plans, explains chief economist at Handelsbanken, Marius Gonsholt Hov. – If things go as we think this week, and we have a bit of luck, then we may get an interest rate peak of 4.25 per cent, says Hov.
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Prices have risen by 4.8 per cent in the past year – now it is about to turn around – news Norway – Overview of news from various parts of the country
