Consumer prices in Norway rose by 7.5 percent at an annual rate in October.
“The price increases continue upwards from already very high levels. It is especially the price development of electricity, food and fuel that contributes,” writes Espen Kristiansen, head of section at SSB in a comment.
Analysts had on average expected an October inflation in Norway of 7.1 percent, according to a compilation of forecasts made by Bloomberg, and the Norwegian central bank has 5.8 percent in its forecast.
Underlying inflation hit a new historical record of 5.9 percent, against an expected 5.5 percent and a forecast from Norway’s central bank of 5 percent.
Central bank governor Ida Wolden Bache said as recently as last week that she currently sees no risk of a so-called wage and price spiral in the Norwegian economy, even though wages in the third quarter rose by 4.1 percent.
Excluding the Norwegian support package for the high electricity price, inflation in October would have been even higher, at 9.5 percent, according to calculations made by SSB.
According to SSB, however, it must also be taken into account that the electricity subsidy itself contributes to increasing the demand for electricity, which in itself raises the market price. It is unclear how big that effect is.