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.