Norway’s core inflation rises more than expected
2022.08.10 09:18
FILE PHOTO: People go about their day near Norway’s central bank building in Oslo, Norway May 31, 2017. REUTERS/Ints Kalnins/File Photo
OSLO (Reuters) – Norway’s core inflation jumped in July to its highest level in more than two decades, exceeding forecasts as the costs of food soared 7.6%, Statistics Norway data showed on Wednesday.
Core inflation, which strips out changing energy prices and taxes, rose 4.5% year-on-year, up from 3.6% in June, exceeding expectations in a Reuters poll of analysts predicting price growth of 3.8%.
Headline inflation, which also includes energy prices, rose to 6.8%, while analysts had predicted a rise of 6.3%.
Norway’s crown currency strengthened on the news, trading at 9.91 against the euro at 0603 GMT from 9.93 just ahead of the data release.
Norway’s central bank, which next week is due to announce its latest decision on interest rate, targets core inflation of 2.0%.
Norges Bank’s monetary policy committee is widely expected to raise rates for a third time this year, but economists disagree on whether the hike will be for 25 basis points (bp), like it did in March, or 50 bp as it did in June.
