Consumer price index, 15 January 2002

The CPI was 109.0 (1998=100) in January 2002 compared with 107.6 in January 2001. The consumer prices increased slightly by 0.1 per cent from 15 December to 15 January.

CPI-AT and CPI-ATE

CPI-AT was 2.7 per cent measured by the year-to-year change in January, unchanged from December. The changes in real taxes therefore pulled the consumer price growth down by 1.4 percentage points. The year-to-year change in the CPI adjusted for tax changes and excluding energy products (CPI-ATE) was 2.5 per cent in January, down 0.2 percentage points from December.

Price change from December to January: Increased housing expenses

The tariffs on electricity rose by 4.0 per cent from December to January. A considerable growth in the cost of transporting energy was registered whereas the electricity prices increased only marginally. As of 1st of January the consumption tax on electricity was reduced by NOK 2 øre/kWh. The rentals for housing went up by 1.0 per cent while the costs for owner-occupied housing increased by 0.9 per cent. The prices of services for maintenance and repair of dwellings rose by 1.9 per cent.

Followed by a considerable decline the last six months of 2001, the prices of petrol increased by 3.4 per cent in January. This was among other things a result of petrol taxes adjusted for inflation at the turn of the year. The subsidy on cargo was also abolished. The prices of transport services rose by 1.8 per cent in January due to an increase in the prices of passenger transport by railway, sea and road.

The prices of food went up by 1.0 per cent mainly caused by a numerous increases in the price of fresh vegetables. This ought to be seen in connection to the poor weather conditions in the Southern part of Europe. The prices of oils and fats rose as well.

Increases in prices of dental services and insurance since the last survey were also registered. The price of newspapers, books and periodicals showed an increase as well.

The prices of clothing and footwear experienced a considerable drop in January due to a high degree of seasonal sales. The prices of clothing decreased by 11.5 per cent, while the prices of footwear went down by 6.0 per cent. The prices of furniture decreased in January as well as a result of sales activities.

The prices of alcoholic beverages went down by 3.8 per cent in January. This is a result of a reduction in the taxes on alcoholic beverages. The tax on spirits dropped 15 per cent while the taxes on wine and beer fell by 5 per cent. The prices of tobacco increased by 1.5 per cent.

Year-to-year change: Still high tariffs on electricity

The CPI increased by 1.3 per cent from January 2001 to January 2002. The main contributors to the growth in the CPI have been the tariffs on electricity and rentals. The tariffs on electricity were 13.2 per cent higher in January this year compared with January last year. The consumption tax fell from NOK 11.30 øre/kWh to NOK 9.30 øre/kWh as of 1st of January. The CPI excluding electricity was 0.8 per cent measured by the year-to-year change in January. The costs for owner-occupied housing and rentals for housing have increased by 4.9 and 4.1 per cent respectively.

The rise in the transport sector was a result of a strong increase in the prices of passenger transport by air. During the last 12 months the airline fares have gone up 20.3 per cent. In addition, the passenger transport by railway has showed a strong increase. The rise in the prices of vehicles and maintenance and repair of personal transport equipments has also contributed to the growth.

Despite an increase in the prices of petrol in January the petrol prices have reduced the contribution from the transport sector to the year-to-year growth. The petrol prices have fallen 8.3 per cent during the last 12 months due to the development in the oil prices and tax reductions in 2001. The CPI excluding energy products (CPI-AE) has increased by 1.2 per cent since January last year.

The prices of miscellaneous goods and services have showed an increase of 4.0 per cent and insurance expenditure has been the main contributor. Hairdressing and some appliances for personal care have also caused price increases.

The prices of catering and accommodation services have contributed to the growth in CPI as well. The prices of accommodation services have increased the most with a growth of 7.8 per cent.

Due to the reduction in the value added taxes, the prices of food and non-alcoholic beverages have caused a decline in the year-to-year growth of more than 0.7 percentage points. The prices have decreased by 6.0 per cent during the last 12 months.

The prices of clothing and footwear have also decreased the year-to-year change. All together, the prices have fallen by 6.7 per cent. Due to tax reductions on alcohol at the turn of the year the prices of alcoholic beverages have gone down by 3.3 per cent during the last 12 months. In addition, lower prices of audio-visual equipments and telephone products have dampened the price increase in January.

The year-to-year growth in the CPI fell from 2.1 per cent in December to 1.3 per cent in January. This strong decline was mainly due to tax changes and price developments of electricity and clothing. On the 1st of January 2001 the overall value added tax (VAT) was changed from 23 to 24 per cent. This VAT effect disappeared in January and was an important factor to the decrease. The tariffs on electricity rose by 4.0 per cent in January, in contrast to a strong increase of 10.2 per cent in January last year. Due to sales, the prices of clothing fell by 11.5 per cent in January while in January last year the prices declined 6.3 per cent.