Figure 1. 12-month rate, CPI and CPI-ATE. Per cent

Figure 2. Monthly change in per cent. CPI, CPI-ATE, CPI, by divisons. Per cent

Figure 3. 12-month rate. CPI, CPI-ATE, CPI by divisions. July 2022 - July 2023

Figure 4. 12-month rate, CPI and CPI ex support scheme for electricity¹. Per cent

¹ The indices included for the components electricity and grid rent are adjusted for tax-changes. This means that the amount of the electricity subsidy is added to the price that the households pay. Thus, this is a hypothetical CPI that shows what overall price growth would have been if no support had been introduced by the government, and the households paid the market price instead. The electricity subsidy consists of the govenrment's temporary electricity subsidy scheme and lower electricity tax.

An error has been discovered in how the temporarily support scheme for cost related to electricity consumption is measured in the CPI-AT (CPI adjusted for tax changes) from January until June 2023. The support scheme is measured as a negative tax, and therefore affects all tax-adjusted indices where electricity is included in the aggregate. The error has been corrected and revised indices are published with the July figures. Note that this does not affect the CPI or the CPI-ATE (CPI adjusted for tax changes and excluding energy products). Only the indices mentioned below are corrected for the months January to June 2023.

The correction means that the affected tax-adjusted indices are adjusted down for 2023, compared to previously published figures. For July, which is the first month the support scheme in practice does not have an effect, the corrected method shows that the indices for electricity prices with and without tax adjustment are the same.

Affected indices

In Statbank table 11119 CPI-AT for goods and services, by delivery sectors:

  • CPI-AT Consumer goods
  • CPI-AT Norwegian consumer goods
  • CPI-AT Energy products

In Statbank table 05327 CPI-AT, by consumption group:

  • CPI-AT All-item index
  • CPI-AT Housing, water, electricity, gas and other fuels

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 as of January through August 2022. From September 2022 the support share was increased to 90 percent. 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. The calculations include an estimate of how much of the consumption takes place in cabins and is therefore not covered by the support scheme.

January to March, a reduced general electricity tax on grid rent has been adopted. From April and until the end of the year, the general tax level applies. Both tax levels increase compared to corresponding periods in 2022. The electricity tax is included in the CPI in the calculation of the index for grid rent.