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Prices in this country, inflation, rose 1.6 percent from September 2019 to September 2020, according to recent figures from Statistics Norway.
Inflation was previously expected to be 2.0 percent, according to estimates obtained by Bloomberg.
Core inflation, which is adjusted for electricity prices and fuel prices, which fluctuate widely from month to month, ended at 3.3% in September. An increase of 3.6 percent was expected in advance.
Core inflation provides a picture of core inflation in the country and is that of Norges Bank, as well as that of all economists and analysts. It is one of the main components when Norges Bank sets the key interest rate.
Food is getting more and more expensive
The most important reason why prices increased 1.6 percent from last year is the evolution of food prices. Food prices were 4.3 percent higher in September this year than in the same month last year.
This means that food prices have more than doubled (169% more to be exact) than prices in the last year.
There has also been an increase in the price of new cars, catering services, as well as other services related to leisure and culture, according to Statistics Norway.
Electricity prices, falling clothing and fuel prices all pulled in the opposite direction.
Prices for electricity and rent for the network were 25% lower in September this year compared to September last year.
Handelsbanken: Top may have been passed
Historically, inflation is 1.6% low. On an annual basis, inflation has only been less than 1.6 percent seven times in the last 40 years.
Chief economist Kari Due-Andresen writes in Handelsbanken’s morning report on Friday that higher growth in the prices of imported consumer goods has raised core inflation in recent months. The reason was the significant weakening of the crown at the beginning of the crown crisis.
Kari Due-Andresen. (Photo: Johnny Vaet Nordskog)
– But this effect will fade, and September figures for core inflation indicate, as expected, that the peak of consumer price inflation may have passed this time, he writes.
Handelsbanken expects core inflation to remain around these levels for the rest of the year before it begins to trend further down.
– During the first half of next year, we expect a significant decrease in inflation as the inflationary effect of the aforementioned depreciation wears off again, writes the chief economist.
This deducted from last month
From August to September, inflation rose 0.4 percent. There was a solid rise in electricity prices, which was the biggest contributor to the increase, according to Statistics Norway.
“Electricity prices, including network rent, increased 9.1 percent in September. Despite this increase, the level of electricity prices is much lower than at the same time last year. ”Writes the statistics agency.
Rising prices for clothing, footwear and interior items also contributed to the increase.
In the opposite direction, fall in the prices of domestic flights, as well as fuel and food.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases via a link, which leads directly to our pages. Copying or other use of all or part of the content may only be done with written permission or as permitted by law. For more terms, see here.
