Norway: Inflation soars in July to highest level in over three years
August 9, 2013
In July, consumer prices rose 0.4% over the previous month. The increase contrasted both the 0.4% fall tallied in June and market expectations of a 0.2% decline. According to Statistics Norway, the monthly print mainly reflects higher prices for food and non-alcoholic beverages as well as for transport.
Annual headline inflation jumped from 2.1% in June to 3.0% in July, which marks the highest reading since April 2010. Consequently, annual average inflation edged up from 1.2% in June to 1.4% in July.
Meanwhile, the core consumer price index, which excludes taxes, fees and energy prices, rose 0.4% in July (June: -0.3% month-on-month). As a result, annual core inflation rose from 1.4% in June to 1.8% in July - the highest level since February 2010.
The Central Bank expects inflation to average 1.8% in 2013, before moderating to 1.5% in 2014. FocusEconomics Consensus Forecast panellists expect inflation to average 1.7% in 2013, which is up 0.1 percentage points from last month's estimate. In 2014, the panel sees inflation at 1.8%.