Norway’s core inflation likely to have accelerated slightly in October – Nordea Bank

Norwegian inflation is likely to have come in slightly higher in October; however, it would still be low at 1.1 percent. The inflation report is set to be published this week. According to a Nordea Bank research report, Norway’s core inflation is expected to have risen 1.1 percent in October from prior month’s 1 percent. Norges Bank also expects inflation to have risen 1.1 percent, whereas consensus expectations are for the core rate to have stayed at 1 percent.

“Our forecast implies somewhat higher price growth on a lot of consumer groups and we expect no major moves this time”, stated Nordea Bank.

In 2016, inflation in Norway fell sharply. Goods inflation is the main contributor given the development in NOK. Service inflation has been rather stable.

“Oil prices are up and NOK, despite oil prices, is on the weak side. Thus it looks like the December report could imply a more significant probability for a hike already in 2018 than the September report did”, added Nordea Bank.

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