Norway: Inflation accelerates in July
August 10, 2018
Consumer prices rose 0.7% month-on-month in July, coming in above the 0.6% increase recorded in June. According to Statistics Norway, July’s reading was due to increased prices for food and non-alcoholic beverages, which more than outweighed a fall in prices for clothing and footwear.
Inflation, meanwhile, accelerated to 3.0% in July from 2.6% in June. Annual average inflation ticked up to 1.9% in July from 1.8% in June.
Core consumer prices—which are adjusted for tax changes and exclude energy prices—increased 0.6% month-on-month in July, up from June’s 0.4% increase. Core inflation inched up to 1.4% in July from 1.1% in June, which was above market analysts’ expectations of 1.2%.
Norway Inflation Forecast
The Central Bank projects that inflation will average 2.3% in 2018 and 1.6% in 2019. FocusEconomics Consensus Forecast panelists expect inflation to average 2.2% in 2018, which is up 0.1 percentage points from last month’s estimate. In 2019, they expect inflation to average 1.9%.
Author: Edward Gardner, Economist