Higher prices for alcohol and tobacco

Norway's consumer price index rose 2.6 per cent from 1996 to 1997. Operation and maintenance of transport equipment along with tobacco, alcoholic beverages, food and electricity had the strongest growth in prices. On the other hand, prices of clothing and shoes were an offsetting factor.

The 12-month growth rate was around three per cent in the first half of 1997 and about 2.3 per cent in the second half. The changes in the 12-month growth rate are largely influenced by the removal of the VAT compensation on certain agricultural products in 1996, and changes in electricity prices. The change in the annual growth from 1996 to 1997 was influenced by several other factors.

Cost of keeping a car up

Annual growth in operation and maintenance of transport equipment group also increased sharply, with 5.2 per cent. This is mainly due to higher prices for gasoline, repairs and spare parts. Gasoline prices rose an average of seven per cent during the period. Some of this price increase is due to higher taxes which went into effect on 1 January. Car insurance showed only a moderate increase during the period.

Higher food prices

Food prices rose 3.5 per cent overall from 1996 to 1997, triggered largely by price increases for dairy products, fruits and vegetables. The removal of VAT compensation in July 1996 led to a strong increase in the price of milk, cheese and meat in the autumn of 1996. This growth continued in 1997.

The milk, cheese and egg group increased barely four per cent in price from 1996 to 1997, while meat and meat products rose barely three per cent. Fruit and vegetables had a price increase of about five per cent, largely fuelled by imported fruits. Coffee prices went up nearly 17 per cent in 1997 due to lower production and higher consumption of coffee in recent years in the major producing countries.

The higher taxes which took effect on 1 January contributed to an overall price increase of 6.4 per cent for beverages and tobacco. Tobacco products prices rose around 11 per cent while the prices of alcoholic beverages rose by just over four per cent.

New Statistics

Consumer price index at 15 December 1997.
Statistics are published every month in the Weekly Bulletin of Statistics. More information: Frode Bendiksen, tel. +47 21 09 44 27, e-mail: fbe@ssb.no, Randi Johannessen, tel. +47 21 09 47 30, e-mail: raj@ssb.no, or Lasse Sandberg, tel. +47 21 09 47 16, e-mail: san@ssb.no.

Weekly Bulletin issue no. 3, 1998