Norway: Inflation falls to lowest level in over three years
January 10, 2012
In December, consumer prices remained unchanged in seasonally adjusted terms over the previous month, following the 0.18% decline recorded in November. According to Statistics Norway, the December reading was the result of higher prices for transport, due to higher airline and taxi fares, which was offset by lower electricity prices. Annual headline inflation fell from 1.2% in November to 0.2% in December. The figure marks the lowest rate since October 2007 and was below market expectations of 0.5%. Overall, in 2011, inflation reached an average of 1.2%, half of the 2.4% observed in 2010, and also less than a half of the official target of 2.5%. Moreover, core inflation, which excludes taxes, fees and energy prices, remained unchanged at November's 1.0%.