Commodity prices are rising. In the morning, Statistics Norway (SSB) came out with recent figures showing that prices in May were 6.3 per cent higher than last year. Inflation was high in May, but in June it increased even more. From May to June, prices increase by 0.9 per cent. – This is an unusually strong price increase. We have to go back to the 80s to find similar growth, says section manager Espen Kristiansen in Statistics Norway to news. The power support helps to dampen the increase. Without it, the twelve-month change would have been 8.2 per cent in June, instead of 6.3 per cent. Core inflation is also rising. For May, core inflation is up to 3.6 per cent. Core inflation is adjusted for electricity prices and fuel prices. This is the highest measured since Statistics Norway began calculating it in 1995. Consumer price index (CPI) Shows changes in the prices of goods and services purchased by households, compared with a base year. The goods and services that make up most of the household budget are given the greatest weight. To see how the price of a product group develops, it is often weighted against the consumer price index, but with a value based on how large a share of the expenses the product group in question constitutes. Read more about weighting at Statistics Norway. Statistics Norway calculates the consumer price index. Food and energy increase the most – In June, it was first and foremost increased prices for fuel and food that caused us to see a further increase in twelve-month growth, Kristiansen said in a press release. Food prices rose by 5.6 per cent from June 2021 to June 2022. From May to June this year, they increased by 2 per cent, Statistics Norway writes. EXPENSIVE: It is food and energy prices that lead to the large price increase, says Espen Kristiansen in Statistics Norway. Photo: Bjørn Olav Nordahl / news – Such a large increase in food prices from May to June is unusual, says Espen Kristiansen. The largest movements in food prices are usually in February and July. These are the time windows where suppliers can adjust prices towards the food chains. From May to June this year, it was price increases for fruit that contributed most to the rise. Prices in this group rose by 8.4 per cent. – It is international conditions that spread to us. We are seeing increased costs throughout the value chain for food production. There is a high demand for the pandemic and due to the war in Ukraine, says Kristiansen. There is a broad price increase on many goods and services. But it is especially energy prices that are pulling up. From May to June this year, prices of fuel and lubricants rose by 12.8 per cent. If we look at June 2021, they were 56.4 percent higher in June this year. – Electricity is almost 30 percent more expensive compared to the same period last year, says Kristiansen. INTEREST RATE: Among other things, rising prices led Norges Bank to raise interest rates in June. Here central bank governor Ida Wolden Bache. Photo: Stian Lysberg Solum / Stian Lysberg Solum Wage growth eaten up In June, Norges Bank decided to raise the interest rate to 1.25 per cent. Thus here the interest rate set up by 0.5 percentage points. The bank did this in response to inflation. – It makes the loans to people more expensive, moreover, it is likely that prices will eat up the wage growth to people this year, says Kristiansen. Thus, the salary will be shorter this year than it did last year. – We get a decrease in the average purchasing power.
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Prices rose 6.3 percent in one year – news Norway – Overview of news from different parts of the country
