Norway: Inflation continues to increase in May
June 10, 2013
In May, consumer prices rose 0.1% over the previous month, which was well below the 0.6% increase tallied in April. Moreover, the figure contrasted market expectations that had prices falling 0.1%. According to Statistics Norway, the monthly print mainly reflects how a rise in prices for transport as well as for food and non-alcoholic beverages was partially offset by lower prices for housing, water, electricity, gas and other fuels as well as for clothing and footwear.
Building on the monthly increase, annual headline inflation inched up from 1.9% in April to 2.0% in May, which marks the highest reading since January 2011.
Meanwhile, the core consumer price index, which excludes taxes, fees and energy prices, rose 0.3% in May (April: +0.7% month-on-month), driving annual core inflation to 1.4%, down from the 1.5% seen in April.
The Central Bank expects consumer prices to rise 1.5% both in 2013 and 2014. FocusEconomics Consensus Forecast panellists see inflation averaging 1.6% in 2013, which is unchanged from last month's estimate. In 2014, the panel sees inflation at 1.8%.