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%.
Author: Edward Gardner, Economist