Decline in 12-month growth rate

The 12-month growth rate fell from 2.5 per cent in April to 2.1 per cent in May mainly due to a marked decline in the price of electricity. The trend in the 12-month growth rate was upwards in the first four months of 1998. More modest declines in the price of electricity, seasonal fluctuations for clothing and higher prices for airline tickets were behind the increase.

The drop in the 12-month growth rate in May this year is primarily due to a pronounced increase in the price of gasoline from April to May last year, which did not happen this year. In addition, electricity prices, including mains rental and charges, dropped by four per cent from April to May this year. During the same period last year the price declined one per cent. The price level of electricity in May this year was just about nine per cent lower than during the same time last year.

The 12-month growth rate was on an upward curve in the first four months of 1998 because of the sharp reduction in electricity prices in the first four months of last year compared to the same period this year. In isolation, this development precipitated a 0.2 per cent increase in the 12-month growth rate from February to April. The price increase for clothing in the wake of brisk winter sales also contributed to a 0.2 per cent increase in the 12-month growth rate in March. Higher prices for airline ticket and sports events pushed the 12-month growth rate up even more in April.

New Statistics

Consumer price index at 15 May 1998.
The statistics are published every month in the Weekly Bulletin of Statistics. For more information, contact: frode.bendiksen@ssb.no, tel. +47 21 09 44 27, kari-anne.hovland@ssb.no, tel. +47 21 09 47 22, randi.johannessen@ssb.no, tel. +47 86 22 47 30 or lasse.sandberg@ssb.no, tel. +47 21 09 47 16.

Weekly Bulletin issue no. 25, 1998 s