Norway Inflation July 2017

Norway

Norway: Inflation continues to slow down in July

August 10, 2017

Consumer prices rose at a slower month-on-month rate in July than in June, rising 0.3% compared to 0.4%, respectively. The slowdown was caused by a sharp fall in prices for clothing and footwear, according to Statistics Norway, while price increases for alcoholic beverages and tobacco moderated it somewhat.

Inflation came in at 1.5% in July. The result was down from 1.9% in June, marking the lowest reading in two years, and further away from the Central Bank’s 2.5% target. Clearly, the downward trend in consumer price inflation continues after having peaked at 4.4% in July 2016. Therefore, annual average inflation also fell in July, hitting 2.8% from 3.1% in June.

The core consumer price index, which excludes taxes, fees and energy prices, showed a 0.3% month-on-month fall in July (June: +0.5% month-on-month). Core inflation was 1.3% in July, representing a drop from May when core inflation was at 1.6%.

The Norges Bank projects that inflation will average 1.8% in 2017 and 1.4% in 2018. FocusEconomics Consensus Forecast panelists expect inflation to average 2.1% in 2017, which is unchanged from last month’s estimate. In 2018, the panel expects inflation to average 1.8%.


Author:, Economist

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Norway Inflation July 2017

Note: Year-on-year and month-on-month variation of consumer price index in %.
Source: Statistics Norway


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