Norway: Inflation hits almost-seven-year high in May
June 10, 2016
In May, consumer prices rose 0.4% over the previous month, which was up from the 0.3% increase registered in April and overshot market expectations of a 0.3% rise. According to Statistics Norway, higher prices for transport, particularly for international and domestic flights, were behind the increase.
Inflation inched up from April’s 3.2% to 3.4% in May. The modest increase has pushed inflation to its highest level since June 2009, as the historically weak value of the krone has resulted in stronger inflationary pressure. Annual average inflation in May was 2.7%, up slightly from April’s reading of 2.6%.
Meanwhile, the core consumer price index, which excludes taxes, fees and energy prices, was steady at April’s 0.4% month-on-month rise. Core inflation inched down in May to 3.2% from April’s 3.3%.
Author: Robert Hill, Economist