Norway: Inflation accelerates in October
Consumer prices increased 0.2% in October, down from September’s 0.5% rise. The increase was primarily due to higher prices for clothing and footwear, housing and utilities, and communications. However, a sharp drop in food and non-alcoholic beverage prices weighed on October’s reading.
Inflation ticked up to 1.8% in October, from 1.5% in September, consequently moving closer to the Norges Bank’s 2.0% target rate. Meanwhile, annual average inflation inched down to 2.5% in October, from 2.6% the month prior.
Next year, inflation is expected to average at or close to the Norges Bank’s target range, thanks to a low unemployment rate and stronger economic growth adding upward pressure on prices. That being said, higher interest rates compared to recent years should keep price pressures in check.