Norway: Inflation hits an over two-year high in June
July 10, 2013
In June, consumer prices fell 0.4% over the previous month, which contrasted the 0.1% increase tallied in May. Moreover, the reading exceeded market expectations that had prices falling 0.3%. According to Statistics Norway, the monthly print mainly reflects lower prices for clothing and footwear as well as for transport.
Despite the monthly drop, annual headline inflation inched up from 2.0% in May to 2.1% in June, which marks the highest reading since December 2010. Meanwhile, annual average inflation edged up from 1.1% in May to 1.2% in June,
Meanwhile, the core consumer price index, which excludes taxes, fees and energy prices, fell 0.3% in June (May: +0.3% month-on-month). As a result, annual core inflation remained unchanged at May's 1.4%.
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 unchanged from last month's estimate. In 2014, the panel sees inflation at 1.8%.