 The latest figures from Statistics Norway (SSB) show that the price growth in Norway is higher than expected. This may make it more difficult for the Central Bank to make further cuts in interest rates, experts say.
The Consumer Price Index (CPI) increased by 0.8 per cent from January 2009 to February 2009, mainly due to increased food and clothing prices. The year-to-year growth in the CPI was 2.5 per cent in February 2009, while the CPI-ATE increased by 3.0 per cent. Imputed rentals and actual rentals rose by 4.0 and 4.9 per cent respectively. Prices of food went up by 5.4 per cent. A price increase in telephone equipment and alcoholic beverages and tobacco was also registered. Prices of several services pulled up the year-to-year growth in the CPI. Services related to recreation and culture increased by 7.3 per cent, while transport and restaurant services went up by 6.3 and 4.8 per cent respectively. Prices of fuel and lubricants, clothing, audiovisual equipment and telephone services were the most important factors to dampening the increase in the last twelve-month growth. - We had expected that the inflation in Norway would decrease as in other countries, but the price growth is now actually increasing, and this is surprising, says chief analyst Erik Bruce of the Nordea Bank to NRK. (NRK/SSB) Rolleiv Solholm |
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