Norway: Inflation accelerates in June

Consumer prices rose 0.6% month-on-month in June, coming in significantly above the 0.1% increase recorded in May. According to Statistics Norway, June’s reading was due to increased prices for food and non-alcoholic beverages; housing, water, electricity, gas and other fuels; transport; and recreation and culture.

Inflation, meanwhile, accelerated to 2.6% in June from May’s 2.3%. Annual average inflation was unchanged at 1.8% in June from May.

Core consumer prices—which are adjusted for tax changes and exclude energy prices—increased 0.4% month-on-month in June, up from May’s 0.2% increase. Core inflation inched down to 1.1% in June from 1.2% a month earlier.

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 2.1% in 2018, which is up 0.1 percentage points from last month’s estimate. In 2019, they expect inflation to average 1.8%.