CPI up 1.3 per cent last 12 months

Actions taken by the Government to limit the corona virus outbreak have implications for the CPI also in May. Services with close to zero consumption in May accounts for more than 4 per cent of total CPI measured in terms of the CPI weights. More than 2 per cent had their prices estimated by the price development in the CPI-all-item index from April to May while approximately the same share was estimated based on seasonal factors. 

Price increase in May

The overall CPI rose by 0.2 per cent from April to May 2020. The increase was mainly caused by a rise in the prices for cars, which increased by 2.2 per cent from last month. Increased prices for electricity, clothes, alcoholic beverages, as well as maintenance and repair of personal transport equipment also contributed to the measured overall rise in May.

Passenger transport by air pulled the CPI in the opposite direction, with an 8.1 per cent price decrease in May. It was the estimated prices for international passenger transport by air which caused the measured decrease. In addition, the prices for food also contributed to lower the increase in the overall CPI, by showing a 0.8 per cent decrease from April to May 2020. It was especially foodstuff associated to the Norwegian National Day that showed a price decrease in May. Furniture and furnishings as well as books also showed a price fall, by 2.9 and 10.6 per cent respectively.

Increased prices for food last twelve months

The overall CPI rose by 1.3 per cent from May 2019 to May 2020. The increase was mainly caused by prices for food, which rose by 4.9 per cent in the period. It was to a large extent the prices for imported agricultural products that contributed to the increase. Prices for imported agricultural products rose by 12.1 per cent from May 2019 to May 2020. The prices for Norwegian agricultural products increased by 3.3 per cent in the same period.

The increase in the overall CPI was dampened by energy products, which among others consists of prices for electricity and fuel. Energy products collectively showed a 34.1 per cent price fall from May 2019 to May 2020.

Increase in the year-to-year growth

The year-to-year growth rose from 0.8 per cent in April to 1.3 per cent in May. The increase in the year-to-year growth was mainly caused by the price development for passenger transport by air, which in May 2020 was largely based on estimated prices, which includes the beforementioned estimated prices. In addition, the price development for electricity and cars contributed to the rise. The prices for electricity including grid rent rose by 2.4 per cent from April to May 2020, while falling 1.8 per cent in the corresponding period last year. The prices for cars rose more from April to May in 2020, compared to the same period last year.

The year-to-year growth in the CPI-ATE was 3.0 per cent in May 2020, an increase of 0.2 percentage points from April 2020.