Norway: Inflation hits an over two-year high
May 10, 2013
In April, consumer prices rose 0.6% over the previous month, which doubled the 0.3% increase tallied in March. Moreover, the figure exceeded market expectations that had prices rising 0.2%. According to Statistics Norway, the monthly print mainly reflects a rise in prices for food and non-alcoholic beverages as well as clothing and footwear.
Building on the monthly increase, annual headline inflation jumped from 1.4% in March to 1.9% in April, which marks the highest reading since January 2011.
Meanwhile, the core consumer price index, which excludes taxes, fees and energy prices, rose 0.7% in April (March: +0.2% month-on-month), driving annual core inflation to 1.5%, up from 0.9% seen in March.
The Central Bank expects consumer prices to rise 1.5% both in 2013 and 2014. FocusEconomics Consensus Forecast panellists see inflation averaging 1.6% in 2013, which is down 0.1 percentage points from last month's estimate. In 2014, the panel sees inflation at 1.8%.