Norway: Inflation softens in December
Consumer prices decreased 0.3% in December, contrasting November’s 0.3% rise. The fall was primarily due to lower prices for food and non-alcoholic beverages, and clothing and footwear.
Inflation ticked down to 1.4% in December from 1.6% in November, consequently moving further from the Norges Bank’s 2.0% target rate. Meanwhile, annual average inflation inched down to 2.2% in December from 2.3% the month prior.
Going forward, inflation is projected to average at or close to the Norges Bank’s target range, due to stronger economic growth adding upward pressure on prices. That being said, higher interest rates compared to recent years should keep price pressures in check.