Norway: Inflation drops to lowest level since September 2023 in April
Inflation came in at 3.6% in April, down from March’s 3.9%. April’s reading represented the weakest inflation rate since September 2023, despite slightly surpassing analysts’ expectations. Looking at the details of the release, April’s moderation largely reflected softer increases in prices for housing and utilities. Conversely, prices of transport plus food and non-alcoholic beverages rose at a quicker pace in April compared to the previous month.
Accordingly, the trend pointed down, with annual average inflation falling to 4.7% in April (March: 5.0%). Meanwhile, core inflation edged down to 4.4% in April, from March’s 4.5%. April’s core inflation print marginally undershot Norges Bank’s expectations but still surprised markets to the upside.
Lastly, consumer prices increased 0.83% in April over the previous month, accelerating from the 0.23% increase logged in March. April’s figure was the highest reading since October 2023.
Our Consensus is for average inflation to slow slightly from current levels in the remainder of Q2 and Q3, before dipping at a faster pace in Q4. That said, inflation will remain notably above Norges Bank’s 2.0% target even at the end of this year.