Cheaper fuel and electricity slow price growth. SSB releases latest inflation data
Inflation in Norway slowed down in May. The Consumer Price Index (CPI) rose by 3.1 percent year-on-year. Among the reasons for the decline are lower energy prices.
The indicator is far from reaching the 2.0 percent level. This is the ideal inflation rate according to Norges Bank.
stock.adobe.com/licencja standardowa
Statistics Norway (SSB) reported that the annual CPI growth rate in May was 0.3 percentage points lower than in April. However, prices did increase compared to the previous month. From April to May, the CPI rose by 0.2 percent.
The CPI adjusted for tax changes and excluding energy prices (CPI-JAE; core inflation) increased by 3.4 percent year-on-year. This is 0.2 percentage points higher than the previous month. This is the second consecutive month in which the CPI-JAE growth rate has accelerated.
The CPI adjusted for tax changes and excluding energy prices (CPI-JAE; core inflation) increased by 3.4 percent year-on-year. This is 0.2 percentage points higher than the previous month. This is the second consecutive month in which the CPI-JAE growth rate has accelerated.
Energy prices are falling. Is it enough to slow inflation?
Fuel prices fell by 6.2 percent in May compared to April. SSB points out that this was influenced by the Storting's decision to temporarily reduce the CO2 tax on diesel, which took effect on May 1. This reduced pressure on the CPI. The decline in energy prices continued to contribute to a lower annual inflation rate.
Electricity also became cheaper. Electricity prices, including the grid fee, fell by 1.0 percent from April to May, while in the same period last year they rose by 3.9 percent. This difference lowered the annual CPI reading. SSB states that energy was one of the most important factors in the May slowdown in prices.
Electricity also became cheaper. Electricity prices, including the grid fee, fell by 1.0 percent from April to May, while in the same period last year they rose by 3.9 percent. This difference lowered the annual CPI reading. SSB states that energy was one of the most important factors in the May slowdown in prices.
Energy prices have changed the inflation outlook.Photo: Adobe Stock, standard license
Food prices are changing the inflation picture. Imported goods are to blame
Food prices rose by 0.3 percent from April to May. A year earlier, during the same period, the increase was 2.9 percent. This also lowered the annual CPI growth rate. In April, the annual increase in food prices was 6.1 percent, as the comparison included low prices after Easter promotions in 2025.
In May, the effect was weaker. The annual rate of food price growth fell to 3.4 percent. At the same time, CPI-JAE accelerated, as prices of some imported goods, among others, increased. SSB points to information and communication equipment, home textiles, larger household appliances, and clothing.
In May, the effect was weaker. The annual rate of food price growth fell to 3.4 percent. At the same time, CPI-JAE accelerated, as prices of some imported goods, among others, increased. SSB points to information and communication equipment, home textiles, larger household appliances, and clothing.
SSB data also shows significant movements in selected product groups. Prices of information and communication equipment rose by 8.3 percent from April to May, while coffee prices fell by 12.1 percent. SSB reported that this was the largest monthly drop in coffee prices measured in the CPI for this group of goods.
How do you rate this article?