Norway: Inflation dips below the Central Bank’s target in June
Consumer prices ticked up 0.1% in June, contrasting the 0.3% decrease posted in May. The increase was primarily due to higher food and transport prices.
Inflation slowed to 1.9% in June from 2.5% in May, the weakest reading since January 2018. Moreover, the print was slightly below the Norges Bank’s 2.0% target rate. Meanwhile, annual average inflation inched down to 3.0% in June from 3.1% in May.
Core consumer prices (CPI-ATE)—which are adjusted for tax changes and exclude energy prices—increased 0.4% in June compared to the previous month, contrasting the 0.2% fall the month prior. Meanwhile, core inflation was stable at May’s 2.3%.
Going forward, inflation should ease somewhat heading towards the end of the year, on a base effect and due to the tighter monetary stance. That being said, solid economic growth and wage increases will support price pressures.