Norway: Inflation hits a 10-month low in March
April 10, 2014
In March, consumer prices rose 0.2% over the previous month. The increase, which marked a decrease over the 0.5% increase tallied in February, was in line with market expectations. According to Statistics Norway, the monthly print mainly reflected higher prices for clothing and footwear as well as for food and non-alcoholic beverages.
Annual headline inflation inched down from 2.1% in February to 2.0% in March, which represented the lowest rate since May 2013. Annual average inflation, however, ticked up from 2.3% in February to 2.4% in March, which represented the highest rate since January 2011.
Meanwhile, the core consumer price index, which excludes taxes, fees and energy prices, increased 0.5% in March (February: +0.6% month-on-month). Annual core inflation increased from 2.4% in February to 2.6% in March, which marks the highest print since June 2009.
The Central Bank expects inflation to average 2.0% in both 2014 and 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 2.0% in 2014, which is up 0.1 percentage points from last month's estimate. In 2015, the panel sees inflation broadly stable at 2.1%.