Consumer price index, 15 January 2003

The CPI stood at 114.5 (1998=100) in January 2003, and from December 2002 to January 2003 the CPI increased by 2.3 per cent, which is the highest monthly growth rate since January 1982. CPI excluding energy products (CPI-AE) was unchanged from December to January.

Strong increase in the tariffs on electricity from December to January

The tariffs on electricity rose by 48.6 per cent from December to January. The electricity prices increased much more than the cost of transporting energy. The consumption tax on electricity was adjusted for inflation and increased from NOK 9.3 to 9.5 øre/kWh in comparison with January last year, when the consumption tax was reduced by NOK 2 øre/kWh. Practically all the suppliers increased their tariffs considerably from December to January.

The rentals for housing and costs for owner-occupied housing increased by 1.2 and 1.3 per cent respectively in January.

Prices within the transport sector increased by 1.2 per cent in January, mainly due to higher prices of petrol and transport services. The petrol prices rose by 1.2 per cent from December to January and can be seen in connection with the increase of petrol tax by NOK 8 øre per litre as of 1st January. Airline fares increased by 2.4 per cent due to, among other things, higher taxes and introduction of a new booking charge. Also the prices of passenger transport by railway, road and sea went up in January.

Higher insurance premiums in addition to increased prices of dental services, cultural services and after school activities were also registered.

With the exception of tax on spirits most of the taxes were only adjusted for inflation as of 1st January. The prices of alcoholic beverages and tobacco showed altogether a price increase of 0.7 per cent. The tax on spirits was reduced by 9.0 per cent and caused the prices of alcoholic beverages to decline by 0.4 per cent. The prices of tobacco, on the other hand, increased by 2.2 per cent. The CPI adjusted for tax changes (CPI-AT) increased by 2.3 per cent from December to January, the same as the CPI.

Due to a high degree of seasonal sales, the prices of clothing and footwear, furniture and household textiles contributed to reduce the increase in the consumer prices from December 2002 to January 2003.

Year-to-year change: Tariffs on electricity caused high CPI growth

The CPI increased by 5.0 per cent from January 2002 to January 2003, the highest growth rate since January 1989. The electricity tariffs were in January this year 82.5 per cent higher than in January last year.

After several months of price reductions the petrol prices increased in January. The petrol prices were in January this year 5.5 per cent higher than in January 2002.

The CPI-AT has increased by 5.4 per cent during the last 12 months. Tax changes therefore reduced the consumer price growth by 0.4 percentage points due to, among other things, the removal of the passenger tax on flights and lower alcohol taxes. The CPI excluding electricity and the CPI-ATE have both increased by 1.8 per cent, while the CPI-AE has risen by 1.6 per cent.

There were registered price increases for different services, such as higher insurance premiums as well as higher prices of different health services, while lower prices of clothing, footwear, audiovisual equipment and lower airline fares reduced the CPI growth on a year-to-year basis.

Change in the year-to-year growth: Strong increase

The year-to-year growth in the CPI went from 2.8 per cent in December to 5.0 per cent in January. This strong rise is by far caused by the price development of tariffs on electricity. As mentioned above the tariffs on electricity increased by 48.6 per cent in January this year, while in January last year the tariffs increased by 4.0 per cent.

Both costs for owner-occupied housing and rentals for housing increased more in January 2003 than in January 2002, as did the prices of transport services, cultural services and insurance premiums. Also the price development of alcoholic beverages contributed.