Summer sales on clothing pulled CPI down
The Consumer Price Index (CPI) fell 0.1 per cent from June to July 2015, mostly due to sales activity on clothing and a decline in electricity prices. Increased food prices dampened the CPI decrease. The year-to-year growth in the CPI was 1.8 per cent in July, down 0.8 percentage points from June.
|Monthly change (per cent)||12-month rate (per cent)||Index|
|June 2015 - July 2015||July 2014 - July 2015||July 2015|
|CPI All-item index||-0.1||1.8||139.9|
|Food and non-alcoholic beverages||1.8||2.9||136.1|
|Housing, water, electricity, gas and other fuels||-0.5||-0.2||167.2|
|Recreation and culture||0.1||3.2||123.3|
|Clothing and footwear||-3.9||0.8||52.1|
|CPI-ATE (july 1999 = 100)||0.0||2.6||131.6|
|CPI by delivery sector|
|Other consumer goods produced in Norway||-0.2||-2.9||160.2|
|Imported consumer goods||-0.5||2.9||93.4|
|Other services with wages as dominating price factor||0.1||2.9||215.6|
The CPI-ATE growth was 2.6 per cent in July. CPI was 139.9 (1998=100) in July 2015, compared to 137.4 in July 2014, which corresponds to a year-to-year growth of 1.8 per cent.
Monthly change: Lower prices on clothing and electricity
The CPI fell 0.1 per cent from June to July. Summer sales on clothing contributed most to the overall decrease. Prices on clothing fell by 4.0 per cent in July. The second most important contributor was the prices of electricity including grid rent which fell 5.3 per cent. Electricity prices by it self has been falling throughout 2015. Grid rent showed a moderate increase last month which can be related to an increase in the consumption tax as of 1 July.
The monthly decline in the CPI was mainly dampened by a 1.9 per cent increase in food prices. Although each and all sub-groups showed rising prices, it was the price of meat products that contributed most with a 2.6 per cent increase. Part of the price increase in some food products can be seen in relation with the “Agricultural Agreement 2015”.
Year-to-year growth: Higher prices of food and beverages
The CPI rose 1.8 per cent from July 2014 to July 2015. The most important factor was that prices of food and non-alcoholic beverages rose by 2.9 per cent over the past twelve months. Food prices alone increased 2.5 per cent, mainly due to higher prices on fruit and sugar commodities. Prices on non-alcoholic beverages went up 5.8 per cent.
Other important factors contributing to the positive year-to-year growth were imputed rentals for home owners, transportation, restaurant services and furniture.
Prices on electricity, phone services and fuels contributed to dampen the growth the last twelve months.
Change in the year-to-year growth: Strong decrease from June to July
The year-to-year growth in the CPI fell from 2.6 per cent in June to 1.8 per cent in July. The descending growth rate was mainly due to the price development in electricity, airfares and food. Prices on electricity including grid rent rose by 6.5 per cent from June to July 2014, while falling more than 5 per cent in the corresponding period this year. Airfares fell from June to July this year while they rose significantly in the same period in 2014. Food prices fell slightly less from June to July this year compared to the same period last year.
The year-to-year growth in the CPI-ATE was 2.6 per cent in July; down 0.6 percentage points from June. This was mainly due to the aforementioned price development in airfares and food.