Norway: Inflation accelerates sharply in 2013
January 10, 2014
In December, consumer prices fell 0.1% over the previous month. The decline contrasted both the 0.1% rise tallied in November and the 0.2% increase that markets had expected. According to Statistics Norway, the monthly print mainly reflects lower prices for food and non-alcoholic beverages, as well as for clothing and footwear.
Annual headline inflation fell from 2.5% in November to 2.0% in December. Inflation was 2.1% in 2013, which was well above the 0.8% recorded in 2012 and represents the highest level since 2010.
Meanwhile, the core consumer price index, which excludes taxes, fees and energy prices, fell 0.1% in December (November: +0.2% month-on-month). Annual core inflation was stable at the previous month's 2.0%.
The Central Bank expects inflation to average 1.5% in 2014 and 2.0% in 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 2.0% in 2014, which is down 0.1 percentage points from last month's estimate. In 2015, the panel sees inflation broadly stable at 2.1%.