Consumer prices rose 1.3 per cent in 1996

Norway's consumer price index rose 1.3 per cent from 1995 to 1996. This is the lowest rate of annual growth since 1960. In particular, changes in taxes on motor vehicles, generally low increases in indirect taxes and strong competition in the clothing trade contributed to the low growth. Higher prices for electricity and agricultural products contributed to the increase in consumer prices.

From December 15, 1995 to December 15, 1996 - the 12-month growth rate - the consumer price index climbed 1.8 per cent. Consumer prices fell slightly from November to December.

The annual growth rate has been in decline throughout much of the 1990s, from 4.1 per cent in 1990 to 1.4 per cent in 1994. In 1995, however, the rate of growth edged upwards to 2.4 per cent before falling again in 1996 to 1.3 per cent. The annual growth rate for 1996 is the lowest since 1960, and hit bottom in March with a 12-month growth rate of 0.7 per cent. The 12-month growth rate was nearly halved from 2.2 per cent in December 1995 to 1.2 per cent in January 1996. An important factor behind the reduced 12-month growth rate was generally lower increases in indirect taxes in 1996 compared to last year. Among other things, the increase in the gasoline tax was only one-third as high as the 1995 hike. Electricity prices also increased significantly in January 1995, but declined in January 1996. In addition, the tax system for cars was restructured, causing car prices to fall an average of nearly five per cent from January 1, 1996.

New Statistics

Consumer price index as of December 15, 1996.
Statistics are published every month in the Weekly Bulletin of Statistics. More information: Berit Koht, tel. +47 21 09 44 58, e-mail: bkt@ssb.no, Lasse Sandberg, tel. +47 21 09 47 16, e-mail: san@ssb.no, Geir Ormseth, tel.+47 21 09 47 22, e-mail: geo@ssb.no or Randi Johannessen, tel. +47 21 09 47 22, e-mail: raj@ssb.no.

Weekly Bulletin issue no. 3, 1997