Statistics Norway has admitted to making an error in its recent inflation figures. The agency initially reported that prices rose 3.3 percent over the past year. It now says the correct figure is 3.1 percent. The mistake occurred in how electricity prices were calculated under Norway's new national power pricing scheme.
Espen Kristiansen, a section head at Statistics Norway, explained the situation. He said this was the first time they incorporated the national pricing model into the consumer price index. The method for measuring electricity prices had to be rebuilt quickly. This is where the error happened. The mistake only affected electricity prices within the overall index.
The incorrect consumer price index for October was published on November 10. The broader picture of price growth remains unchanged. Core inflation figures, which exclude tax changes and energy prices, were not affected by this calculation error.
Marius Hov, chief economist at Handelsbanken, commented on the implications. He noted this is unfortunate for Statistics Norway's reputation. But he said it will likely have little impact on the central bank's interest rate decisions. The bank primarily focuses on core inflation when making monetary policy.
The error stemmed from methodological changes required by Norway's new electricity pricing system. Both data sources and calculation code needed rapid modification when the national price scheme launched in October.
This incident highlights the challenges statistical agencies face during major policy transitions. Norway's electricity market reforms represent a substantial shift in how power prices are determined across the country. The national pricing model aims to create more stable and predictable electricity costs for Norwegian consumers.
Statistics Norway maintains high credibility internationally for its data quality. Such public corrections, while embarrassing, demonstrate the agency's commitment to transparency. Most economists agree the correction doesn't change the fundamental inflation picture. Price growth remains above the central bank's target, keeping pressure on interest rate policy.
The timing matters for economic observers. Inflation data directly influences the central bank's interest rate decisions. These decisions affect everything from mortgage costs to business investment across Norway. While the core inflation figure remains the primary concern, any data revision receives close scrutiny.
Norwegian inflation data continues to draw international attention. The country's energy-dependent economy provides insights into how European energy transitions affect price stability. Accurate measurement becomes increasingly important as Norway implements its ambitious climate and energy policies.