Inflation in Norway Accelerates. Rising Food and Electricity Prices Are to Blame

In September, food prices showed a typical seasonal decline—down 1.2% compared to August. However, since the drop was stronger in the same period last year, the annual rate of food price growth reached 5.8%.

It was the increase in food prices that contributed to the overall inflation rate rising compared to August. Among the foods that became most expensive over the year were chocolate, meat, and vegetables.

Energy costs were another factor pushing inflation higher. Electricity prices, including fees, rose by 3.3% in September compared to August, and were 27.0% higher year-on-year.

Fuel also became more expensive—their prices increased by 0.9% from August to September, which also contributed to the overall price index growth.

A discrepancy emerged between the price increases of domestic goods and services and those of imported goods. Domestic goods prices (excluding energy) rose by 5.3% year-on-year, while imported goods prices increased by only 1.1%. In the group of imported goods, the main factor holding back inflation was clothing, footwear, and furniture, which saw price drops or only moderate increases in the last month.

Meanwhile, housing costs rose by 0.2% month-on-month. Their year-on-year increase remained at 3.4%, which helped moderate the pace of inflation.