CPI up 3,1 per cent last 12 months

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The Consumer Price Index (CPI) decreased by 0.3 per cent from February to March 2021, while the CPI-ATE increased by 0.3 per cent in the same period. From March 2020 to March 2021 the CPI rose by 3.1 per cent, while the CPI-ATE growth was 2.7 per cent.

Written by: Hamdi A. Mohamed

Actions taken by the Government to limit the corona virus outbreak have implications for the CPI also in March. Even though most services are available again and is included as normal in the CPI, some services regarding travel amongst other are still being treated separately. Services with close to zero consumption in March accounts for about 2.5 per cent of total CPI measured in terms of the CPI weights, and prices on these services are mainly estimated based on seasonal factors.

Figure 1. 12-month rate, CPI and CPI-ATE

CPI CPI-ATE
Mar. 2019 2.9 2.7
Apr. 2019 2.9 2.6
May 2019 2.5 2.3
June 2019 1.9 2.3
July 2019 1.9 2.2
Aug. 2019 1.6 2.1
Sep. 2019 1.5 2.2
Oct. 2019 1.8 2.2
Nov. 2019 1.6 2
Dec. 2019 1.4 1.8
Jan. 2020 1.8 2.9
Feb. 2020 0.9 2.1
Mar. 2020 0.7 2.1
Apr. 2020 0.8 2.8
May 2020 1.3 3
June 2020 1.4 3.1
July 2020 1.3 3.5
Aug. 2020 1.7 3.7
Sep. 2020 1.6 3.3
Oct. 2020 1.7 3.4
Nov. 2020 0.7 2.9
Dec. 2020 1.4 3
Jan. 2021 2.5 2.7
Feb. 2021 3.3 2.7
Mar. 2021 3.1 2.7

Figure 2. Monthly change in per cent. CPI, CPI-ATE, CPI by divisons

February 2021 - March 2021 February 2020 - March 2020
Miscellaneous goods and services 0 0
Restaurants and hotels 0.5 0.4
Education 0 0
Recreation and culture -0.1 -1
Communications -0.3 -0.5
Transport 0.1 0.2
Health 0.7 0.1
Furnishings, household equipment and routine maintenance 1.9 1.4
Housing, water, electricity, gas and other fuels -1.6 -0.9
Clothing and footwear 2.5 4.9
Alcoholic beverages and tobacco -0.3 -0.4
Food and non-alcoholic beverages -0.6 -0.3
CPI -ATE All-item index 0.3 0.3
CPI All-item index -0.3 0

Figure 3. 12-month rate. CPI, CPI-ATE, CPI by divisions. March 2020 - March 2021

March 2020 - March 2021
Miscellaneous goods and services 3.1
Restaurants and hotels 1.8
Education 2.1
Recreation and culture 4.4
Communications 2.2
Transport 2
Health 3.3
Furnishings, household equipment and routine maintenance 7.6
Housing, water, electricity, gas and other fuels 5.7
Clothing and footwear -2
Alcoholic beverages and tobacco -1.6
Food and non-alcoholic beverages -0.3
CPI -ATE All-item index 2.7
CPI All-item index 3.1

Corona consequences for CPI for March

Measures taken by the Government to limit the corona outbreak have implications for the CPI also for March. Services that were still closed or had a consumption close to zero, such as sports events were estimated with the change in the all-item CPI from February to March. Services with clear seasonal variation in prices such as international flights and package holidays had their price development estimated based on seasonal factors. For more information, see Corona consequences for CPI.

Temporarily change in the reduced VAT rate and air passenger tax

As one of the measures related to the corona situation, the reduced value added tax (VAT) rate was decreased from 12 per cent to 6 per cent from April 1, 2020. Reduced VAT rates apply to personal transports, hotel accommodations as well as access to cinema, sporting events and amusement parks. In addition, air passenger tax is temporarily exempt. In CPI-AT and CPI-ATE, this is treated so that the services related to non-availability due to the corona situation are not affected by the changed VAT rate nor flight passenger tax, while for the services that consumption has been taken place a reduced VAT and air passenger tax has been measured.

Seasonally adjusted all-item CPI and all-item CPI-ATE

Statistics Norway publishes each month a seasonally adjusted all-item CPI and all-item CPI-ATE. The seasonal adjustment during the corona crisis is made in a way that the figures from the period which is affected by the crisis are not included in the data for calculating the seasonal pattern. Technically, in the seasonal adjustment routine, this is done by specifying the period as the extreme value. Statistics Norway's seasonal adjustment of all-item CPI and all-item CPI-ATE is in line with recommendations from Eurostat.

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