Electricity prices continue to rise

The consumer price index rose by 0.4 per cent from December 1998 to January 1999. Higher prices for electricity, gasoline and use of public transport were the main contributors. The price situation is as usual also affected by higher excise duties that went into effect on 1st January. January sales of clothing, shoes and furniture were offsetting factors. The year-to-year growth in January was 2.3 per cent.

The single largest contributor to the growth of the consumer price index from December 1998 to January 1999 was the increase in the price of electricity delivered to households. Including grid rent and taxes, the price rose 6.6 per cent. Power prices rose by around eight per cent, while grid rents rose by just over five per cent. The electricity tax increased by only a modest amount. This is the third month in a row that the price of electricity has increased, although the level of electricity prices is still lower than it was 12 months ago.

Inflation-adjusted duties

Excise duties were mainly adjusted for expected inflation in 1999 from the start of the year (around 3.3 per cent). The exception is excise duties on spirits, wine and fortified wine, which were all reduced by just under two per cent.

The higher excise duty that went into effect 1st January and the removal of the freight equalization subsidy were the main reasons why gasoline prices increased by four per cent from December to January. The largest percentual increase took place in Eastern Norway, the most populous region of the country. This might be because there were fewer offers of cheaper gasoline in January than in December in Eastern Norway. Excise duties on cars also increased, causing car prices to rise by one per cent from December.

The price of beverages increased by an average of 1.3 per cent from December to January. This increase is mainly due to higher excise duties on beer, sugar and carbonated beverages. Prices of spirits, wine and fortified wine increased despite the 0.9 per cent reduction in excise duties from 1st January. The reason is for this is the higher prices paid by the State Wine and Spirits Monopoly in the wake of the fall in the value of the krone. In addition, the Monopoly has changed its markup on wines with reduced alcohol content. A price increase of 3.3 per cent was registered for tobacco.

New Statistics
Consumer price index, 15th January 1999.
The statistics are published monthly in the Weekly Bulletin of Statistics. For more information contact: Frode.Bendiksen@ssb.no, tel. +47 21 09 44 27, or Berit.Koht@ssb.no, tel. +47 21 09 47 61.

Weekly Bulletin issue no. 7, 1999