Core inflation of Norway surprised the market on upside in November as it is increased by 3.1%. The Norges Bank was expecting the figure at 2.96%.

The higher than expected inflation is the result of increase in year on year food prices which was unexpected for the analysts. The rise in food prices are temporary, hence, it is unexpected to affect the inflation rate in December.

"We expect Norges Bank to remain on hold in December, but that has nothing to do with current inflation", argues Nordea bank in a research note.