Drop in consumer prices

The consumer price index dropped by 0.2 per cent from June to July, largely because of the decline in electricity prices and summer sales of clothing and shoes. Price increases for food, health care, gasoline and car insurance were offsetting factors. The 12-month growth rate was 2.2 per cent, against 2.9 per cent in June.

Lower prices for electricity was the single most important contribution to the decline in the consumer price index from the previous month. Reduced electricity prices and the after-effects of last year's rise in food prices, also made substantial contributions to the drop in the 12-month growth rate from June to July this year.

Reduced electricity prices

The price of electricity to consumers, including grid rental and charges, fell by 5.8 per cent from June to July. The price level is now three per cent higher than in June last year, before prices jumped in the second half. Prices of other energy sources showed only small changes from the previous month.

Summer clothing and shoes sales caused prices to decline by 2.4 per cent from June to July. The price decline was somewhat stronger compared with the same period last year. The sales covered a broad spectrum of products.

The annual agricultural settlement precipitated only small increases in the price of meat and dairy products effective 1 July. The consumer price index showed a 10 øre increase in the price of a liter of milk, while the kilo price of cheese went up about 70 øre. Meat and meat products rose 0.6 per cent last month.

New Statistics

Consumer price index, per July 1997.
Statistics are published every month in the Weekly Bulletin of Statistics. More information: Geir Ormseth, tel. +47 21 09 47 22, e-mail: geo@ssb.no, Randi Johannessen, tel. +47 21 09 47 30, e-mail: raj@ssb.no or Lasse Sandberg, tel. +47 21 09 47 16, e-mail: san@ssb.no.

Weekly Bulletin issue no. 33, 1997