Norway Inflation

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Norway: Inflation jumps to six-month high in July on food prices

August 11, 2014

In July, consumer prices rose 0.7% over the previous month, which marked the largest increase in almost two years. The increase, which contrasted the 0.2% decrease tallied in June, overshot the flat reading that market analysts had expected. According to Statistics Norway, the monthly print mainly reflected much higher prices for food and non-alcoholic beverages and, to a lesser extent, for transport, which more than compensated for a sharp drop in prices for clothing and footwear.

Annual headline inflation jumped from the previous month’s 1.9% to 2.2% in July, which was the highest rate recorded since February this year. Annual average inflation, however, was stable at June’s 2.3% in July.

Meanwhile, the core consumer price index, which excludes taxes, fees and energy prices, rose 0.6% in July (June: -0.2% month-on-month). Annual core inflation increased from 2.4% in June to 2.6% in July, which represented the highest rate 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 unchanged from last month’s estimate. In 2015, the panel expects inflation to be broadly stable at 2.1%.


Author: Ricard Torné, Head of Economic Research

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Norway Inflation July 2014 0

Note: Year-on-year and month-on-month variation of consumer price index in %.
Source: Statistics Norway (SN).


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