Norway: Inflation steady in December
January 10, 2017
Consumer prices in December declined 0.5% from the previous month, contrasting the 0.2% increase recorded in November and undershooting analysts’ expectations of a 0.1% drop. According to Statistics Norway, the price decrease was driven by lower prices for food and non-alcoholic beverages, housing and utilities and clothing and footwear.
Inflation was unchanged at 3.5% in December, the lowest reading in seven months but still significantly above the Central Bank’s inflation target of 2.5%. Annual average inflation in December was also stable at 3.5%, an almost eight-year high.
The core consumer price index, which excludes taxes, fees and energy prices, fell by 0.4% month-on-month in December (November: -0.1% mom). Core inflation inched down from 2.6% in November to 2.5% in December.