Consumer price inflation in Norway eased to 0.2 percent in July from 0.5 percent in June, data from Statistics Norway showed Friday. At the same time, the producer price index declined compared to July last year.
According to the statistical office, the main cause for the low year-to-year growth in CPI was the development in electricity prices. Electricity prices including grid rent was 28.4 percent lower than in July 2011.
The CPI fell 0.5 percent from June to July. The main reason for the decline was a 11.8 percent fall in electricity prices, including grid rent. The drop in electricity costs can be attributed to heavy rain and lower consumption due to summer holidays, the statistical office said.
The core inflation, adjusted for tax changes and excluding price changes in energy products, was 1.3 percent, up 0.1 percentage point from a month earlier.
Separately, the statistical office said the producer price index for the industrial sector fell 0.6 percent year-on-year in July. However, compared to June, the index was up 1.1 percent.
by RTT Staff Writer
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