Consumer price index, April 2016

The year-to-year CPI-ATE growth was 3.3 per cent in April, unchanged from March. The CPI was 143.8 (1998=100) in April 2016, compared to 139.3 in April 2015, which corresponds to a year-to-year growth of 3.2 per cent.

Monthly change: higher food prices, lower airfares

The CPI rose 0.3 per cent from March to April. The main contributing factor was a 3.0 per cent growth in food prices. This somewhat large price increase came after a roughly similar price decrease in March, and the price level in April is lower than it was before the Easter sale in March. All sub-groups showed higher prices. The largest price growth was among the groups that had large price cuts last month; sugar goods, fruits, vegetables, and meat. Prices of imported agricultural goods went up 3.4 per cent, while prices of Norwegian agricultural goods increased 2.1 per cent.

Prices on clothing rose for the third consecutive month. From March to April prices increased 1.2 per cent, and along with higher prices on non-alcoholic beverages contributed to the rise in the CPI in April.

As expected, airfares fell sharply in April after last month’s Easter-driven price increases. Prices on airline tickets fell 22.2 per cent, which more than reversed the increase in March. Both domestic and international airfares showed large price decreases.

Year-to-year growth: higher food and electricity prices

The CPI rose 3.2 per cent from April 2015 to April 2016. Higher food prices were the largest contributor to the year-to-year growth. Food prices were in April this year 3.9 per cent higher than in the same month last year. Prices in every sub-group have risen in the last twelve months, however meat, sugar goods and the group called food products n.e.c. contributed more than the other sub-groups.

Prices on electricity including grid rent had a year-to-year increase of 12.3 per cent. This is the highest year-over-year change since November 2013.

Higher prices of clothing, cultural services, restaurants and furniture, together with increased airfares also contributed to the rise of the CPI last year.

The year-to-year growth in the CPI was mainly dampened by lower fuel prices. Petrol prices have fallen 5.3 per cent and diesel prices are down 9.9 per cent in twelve months.

Change in the year-to-year growth: growth rate marginally down

The year-to-year growth in the CPI decreased from 3.3 per cent in March to 3.2 per cent in April. The growth rate of the CPI-ATE remained unchanged at 3.3 per cent in the same period. The slightly lower growth rate in the CPI was mainly due to the development in airfares. They fell 22.2 per cent from March to April this year, while they went down 8.7 per cent in the same period last year. The price development of package holidays, fuels and furniture also contributed to the slightly lower CPI growth rate.

The price development of food and non-alcoholic beverages pulled the growth rate in the opposite direction, as prices rose 3.0 per cent from March to April 2016, compared to an increase of 0.5 per cent in the same period in 2015.