Cheaper Energy, but Inflation Doesn’t Slow Down. Prices Continue to Rise Over the Fjords
According to data from the Central Bureau of Statistics (SSB), the prices of goods and services in Norway rose by 3.3 percent year-on-year in October. This is a decrease compared to September, when inflation stood at 3.6 percent.
Experts predict further slowdown in inflation if electricity prices remain low.
Fot. Adobe Stock, licencja standardowa
SSB reports that the drop in inflation is mainly due to lower energy prices from September to October. The agency explains that the noregspris-ordningen, Norway’s national energy price regulation system, contributed to lower electricity costs in southern regions of the country.
“The introduction of this solution has led to lower electricity prices,” said Espen Kristiansen, head of one of SSB’s departments. Lower electricity bills have resulted in less inflationary pressure on households.
“The introduction of this solution has led to lower electricity prices,” said Espen Kristiansen, head of one of SSB’s departments. Lower electricity bills have resulted in less inflationary pressure on households.
Rising Food Prices Keep Inflation Up
Food prices rose by 0.6 percent in October compared to the previous month. Compared to the same period last year, groceries are on average 6.2 percent more expensive.
The biggest increases were seen in coffee, sugar, fresh cod, and chocolate. The rise in food prices is keeping overall inflation at a nearly steady level, despite falling energy costs.
The biggest increases were seen in coffee, sugar, fresh cod, and chocolate. The rise in food prices is keeping overall inflation at a nearly steady level, despite falling energy costs.
Groceries are on average 6.2 percent more expensive than a year ago.Photo: Adobe Stock, standard license
SSB points out that price changes in the energy sector may continue to affect overall inflation dynamics in the coming months. If the trend of lower electricity prices continues, the annual inflation rate could slow down even further. At the same time, experts note that persistently high food prices may limit the rate at which inflation falls in Norway.
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