From January 2022 publication, Statistics Norway expands the use of a multilateral calculation method in the CPI for price indices based on scanner data. The method that was introduced for the sub-index for food and non-alcoholic beverages as of January 2021, is extended to also include non-food products from grocery stores, as well as goods and services from petrol stations. This method captures changes in the product range and consumption pattern from month to month to a greater extent than traditional CPI methodology. The change in method also means that a much larger range of product is covered compared to before. Analyzes of previous method against the new one for the period 2018-2021 show that there are small differences in the results at aggregate level. The method change also affects HICP and derived series such as CPI-AT and CPI-ATE.
The weights and basket composition for the CPI and the HICP has also been updated. The updated weight structure is based on the household final consumption expenditure from annual National Accounts (NA). The 2022 weights for both CPI and HICP have been derived from the most recent information from the annual and the monthly NA. More precisely, the monthly NA data from 2021 has be used together with the annual NA data of 2020 to compile the CPI and HICP weights.
The Norwegian parliament has adopted a support scheme for electricity costs aimed at households. When the market price of elspot on average exceeds NOK 0.7 per kilowatt hour for one month, the state will provide direct support to electricity customers, with a support share of 55 percent in December 2021 and 80 percent in January, February and March 2022 for the monthly average of the elspot price which exceed NOK 0.7 per kilowatt hour (excl. VAT). The support is provided for a monthly power consumption of up to 5000 kilowatt hours.
The CPI measures the support scheme for electricity costs as a direct discount on electricity prices aimed at households. The CPI takes the five bidding areas into account when calculating the electricity index. For the bidding area where the elspot prices on average for the month do not exceed NOK 0.7 per kilowatt hour (excl. VAT), the actual market prices paid by households are used. While compensated prices are used for elspot in bidding areas where the average elspot price for the month does exceed NOK 0.7 per kilowatt hour.
The discount is applied to all contract types for electricity that are included in the CPI for the given bidding area. The value added tax (VAT) is added to the price in bidding areas that are not exempt from this.
For the period January to March, a reduced While tax on grid rent has also been adopted. The electricity tax is included in the CPI in the calculation of the index for grid rent.