More expensive to keep a car

The consumer price index rose 0.3 per cent from March to April 1999. The year-to-year growth in April increased 2.5 per cent against 2.3 per cent in March. Higher prices for gasoline and clothing are the main factors behind the increase.

Higher transport equipment operation and maintenance expenses were one of the main contributors to the 12-month growth rate in April. Over the past 12 months, gasoline prices have risen by 4.6 per cent, a sharp increase from March. The sharp increase in prices from March is due to a decline of almost two per cent from March to April last year, while the increase during the same period this year has been over three per cent. The upturn in crude oil prices may explain some of the increase in gasoline prices last month. In addition, there has been an overall increase of about five per cent in the price of garage repairs, spare parts and maintenance. The operation and maintenance of transport equipment accounts by itself for nearly one-fifth of the total contribution to the 12-month growth rate. Car purchases have become one per cent more expensive in the last 12 months.

Clothing prices have risen after the winter sales, which took place somewhat later than last year. While most of the price increase last year occurred between February and March, most of the increase this year took place from March to April. Clothing prices went up 2.9 per cent from March to April, although they are still 0.6 per cent under last year's level.

Food prices rose last month
Food also contributed to the increase in consumer prices from March to April. Food prices rose 0.5 per cent overall last month mainly because of seasonal price increases for vegetables, with carrots, tomatoes and onions increasing the most. Food prices in April were 3.6 per cent higher this year than at the same time last year.

A reduction of about four per cent in the price of electricity, including grid rent and taxes, helped to check the price increase. In addition, phone charges showed a decline of more than six per cent. Competition in telecommunications has made it steadily cheaper to call, while the basic service charge has gone up.

Harmonized consumer price index
The harmonized consumer price index for the European Economic Area increased from February to March in all countries with the exception of Austria, where there was no change. Greece had the highest increase from February to March, with 2.5 per cent. Inflation in the entire EEA is still low. Prices rose 0.3 per cent from February to March and from March last year the increase was 1.2 per cent.

The EEA had the highest price increase in education, which has gone up four per cent over the past 12 months. Sweden had the sharpest increase, with 8.6 per cent. The Norwegian harmonized index for April was 106.8 (1996=100), an increase of 0.3 per cent from March this year and 2.2. per cent from April last year.

New Statistics
Consumer price index, 15 April 1999.
The statistics are published monthly in the Weekly Bulletin of Statistics. For more information contact: Frode.Bendiksen@ssb.no, tel. +47 21 09 44 27 or Randi.Johannessen@ssb.no, tel. +47 22 45 47 30.

Weekly Bulletin issue no. 19, 1999