Norway: Inflation continues to mount in August
September 10, 2013
In August, consumer prices fell 0.1% over the previous month. The print contrasted the 0.4% rise tallied in July and came in above the 0.4% decline market analysts had expected. According to Statistics Norway, the monthly print mainly reflects lower prices for food and non-alcoholic beverages as well as for transport.
Annual headline inflation rose from 3.0% in July to 3.2% in August, which marks the highest reading since April 2010. Consequently, annual average inflation edged up from 1.4% in July to 1.7% in August.
Meanwhile, the core consumer price index, which excludes taxes, fees and energy prices, fell 0.1% in August (July: +0.4% month-on-month). Annual core inflation, however, rose from 1.8% in July to 2.5% in August - the highest level since July 2009.
The Central Bank expects inflation to average 1.8% in 2013 before moderating to 1.5% in 2014. FocusEconomics Consensus Forecast panelists expect inflation to average 1.8% in 2013, which is up 0.1 percentage points from last month's estimate. In 2014, the panel sees inflation at 1.9%.