Norway: Inflation hits a five-month low in February
March 11, 2013
In February, consumer prices rose 0.7% over the previous month, which contrasted the 0.2% decline tallied in January. According to Statistics Norway, the monthly print mainly reflected a strong rise in prices for transport as well as for clothing and footwear. Despite the monthly increase, annual headline inflation fell from 1.3% in January to 1.0% in February, the lowest reading in five months. In addition, the figure matched market expectations.
Meanwhile, the core consumer price index, which excludes taxes, fees and energy prices, rose 0.7% in February (January: -0.5% month-on-month), driving annual core inflation to 1.1%, which is a notch down from the 1.2% seen in January.
The Central Bank expects consumer prices to rise 2.0% both in 2013 and 2014. FocusEconomics Consensus Forecast panellists see inflation averaging 1.7% in 2013, which is unchanged from last month's estimate. In 2014, the panel sees inflation at 2.0%.