Norway: Inflation softens in August
September 10, 2019
Consumer prices fell 0.7% in August, contrasting July’s 0.7% increase. The fall was primarily due to cheaper prices for food and non-alcoholic beverages, transport and furnishing, household equipment and maintenance.
Inflation ticked down to 1.6% in August, from 1.9% in July, consequently falling further below the Norges Bank’s 2.0% target rate. Meanwhile, annual average inflation inched down to 2.8% in August, from 2.9% in July.
Looking ahead, inflation is projected to remain close to the Norges Bank’s target range, kept in check by a tighter monetary stance. However, a healthy labor market and solid economic growth should prop up price pressures.
Author: Steven Burke, Economist