Prices are rising even faster than Norwegians thought: The latest numbers released Thursday show prices rose an average 7.5 percent in October, compared to the same month last year, up from an annual inflation rate of 6.9 percent in September.
The numbers from state statistics bureau SSB (Statistics Norway) were higher than many analysts and economists had expected. Newspaper Dagens Næringsliv (DN) reported that most predicted an annual inflation rate of 6.8 percent in October. Prices are also going up month by month but November may show some relief given lots of rain that’s lowering electricity rates.
“Price growth is continuing from already extremely high levels,” said Espen Kristiansen of SSB. He pointed especially to the high electricity rates in October along with big jumps in food prices and fuel. Norway’s core inflation rate (inflation adjusted for energy and changes in taxation) landed at 5.9 percent, up from 5.3 percent in September.
Kjetil Martinsen, chief economist in Swedbank, said the price hikes from month to month indicate “that the momentum behind inflation is very strong, and that suggests high inflation will continue.” Speculation is thus rising that Norway’s central bank will raise interest rates once again in December.