It is the annual price increase from January 2022 to January 2023 which is 7 per cent. It was expected that it would be around 6.5 per cent. – It is much. We have to go back to the 80s to find figures of that order of magnitude, so it is a high number, says section chief Espen Kristiansen at Statistics Norway (SSB) to news’s Nyhetsmorgen. The most important reasons for the high price increase are still the development in electricity and food prices. From January last year to January this year, the prices of food and non-alcoholic beverages rose by 12.0 per cent In January this year, the prices of cars also increased a lot as a result of a tax change. The price of electricity and foodstuffs are some of the reasons for the growth. Photo: NTB/news Another record In the CPI adjusted for tax changes and what is called energy goods (CPI-JAE), the price increase is 6.4 per cent over the past year. – And that is probably a new record. We have never seen such strong price growth with this indicator since we started creating it in 2001, says Kristiansen. The previous top quote was 5.9 percent. – Broad and strong price rise The increase is taking place despite the fact that the prices of electricity, including grid rent, fell by 10 per cent from December 2022 to January 2023. Nevertheless, electricity prices were 15.4 per cent higher in January 2023 than in January 2022. – We still see a broad and strong price rise for most goods and services when we compare with January last year, says Espen Kristiansen. The electricity subsidy helped to moderate the twelve-month change by 1.1 percentage points and without the electricity subsidy the twelve-month change for the CPI would have been 8.1 per cent in January. Chief economist Kyrre M. Knudsen at SpareBank 1 SR-Bank. Photo: SpareBank 1 SR-Bank Tracks two interest rate hikes Chief economist Kyrre M. Knudsen at SpareBank 1 SR-Bank says the price increase was higher than what the market had expected. – Although we have seen signs of improvement, this is a powerful reminder that the danger of inflation is not over. He believes the figures increase the likelihood that we will have two interest rate hikes before the summer. One in March and one in June. – This is obviously bad news for everyone with high mortgages, he says. Nordea’s chief economist, Kjetil Olsen, also believes in two interest rate hikes before the summer. – We have seen for a long time that there is a very broad rise in prices. It seems that the price dynamics we have in the Norwegian economy are now a little more serious than we had hoped for.
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– We have to go back to the 80s – news Norway – Overview of news from different parts of the country
