Norway: Inflation declines again in October
November 11, 2013
In October, consumer prices rose 0.1% over the previous month. The reading followed the 0.5% increase tallied in September and matched market expectations. According to Statistics Norway, the monthly print mainly reflects higher prices for clothing and footwear as well as for housing, water, electricity, gas and other fuels, which more than offset lower prices for transportation as well as for food and non-alcoholic beverages.
Annual headline inflation declined from 2.8% in September to 2.4% in October, marking the lowest rate in four months. Annual average inflation inched up from 1.9% in September to 2.0% in October.
Meanwhile, the core consumer price index, which excludes taxes, fees and energy prices, rose 0.2% in October (September: +0.4% month-on-month). Annual core inflation increased from 1.7% in September to 1.9% in October.
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 2.1% in 2013, which is up 0.2 percentage points from last month's estimate. In 2014, the panel sees inflation steady at 2.1%, which is also up 0.2 percentage points from last month's projection.