Strong growth in Consumer Price Index (CPI)

The CPI increased by 1.3 percent from January to February 2010. The prices on electricity including grid tariff contributed most to the growth. The CPI rose by 3.0 percent from February 2009 to February 2010, while CPI-ATE increased by 1.9 percent in the same period.

The consumer price index (CPI) was 128.7 (1998=100) per February 2010, compared to 125.0 at the same time in 2009. This corresponds to a year-to-year growth of 3.0 percent in February 2010, up from 2.5 percent the previous month. The year-to year growth in the CPI-ATE was 1.9 percent in February 2010, compared to 2.3 per cent in the previous month.

Electricity caused high CPI growth

The CPI went up by 1.3 percent from January to February 2010. The increase in electricity prices including grid tariff, of 16.5 percent, accounted for more that half of the rise. Airline fares increased by 27.2 percent in February, while imputed rentals for households went up by 0.7 percent. Following sales in January, the prices of furniture and furnishing rose in February. Prices on food, especially dairy products, also contributed to the growth in the CPI.

The monthly growth in February was slightly dampened by a fall in book prices, of 4.5 percent.

The CPI rose from 2.5 percent in January to 3.0 per cent in February 2010.

The increase of 21.1 percent in prices on electricity included grid tariff was an important factor behind the year-to-year growth. Imputed rentals for households and prices on fuels rose by 3.2 and 12.0 percent respectively, while prices of recreational and cultural services, catering services, package holidays and books also contributed to the growth.

Decline in prices on clothes, furniture, furnishings and decorations, carpets and other floor coverings together with audio-visual equipment has had a dampening effect on the growth the past twelve months.

The 0.5 percent rise in the year-to-year growth in the CPI was mainly caused by an increase in electricity prices of 16.5 pecent from January to February this year. In comparison, the electricity prices decreased by 4.2 percent in the same period last year. Change in the course of prices on airline fares and imputed rentals for households also contributed to the year-to-year growth.

The year-to-year growth in the CPI-ATE declined 0.4 percentage point, from 2.3 percent in January to 1.9 per cent in February 2010. This development can be seen in relation to a sharper increase in prices on food and clothes from January to February in 2009 than in the same period this year.

Source: Statistics Norway