Norway's core inflation to fall in Norges Bank’s projections range

In Norway, the inflation figures will probably be somewhat less important than usual in September, given that Norges Bank has made it clear that it both expects and accepts that core inflation will be well above the 2.5% target for a while. The reason, of course, is that the high rate of inflation is being driven by weakness in the NOK, which is expected to be only temporary. 

Further ahead, inflation is set to fall as wage growth slows and capacity utilisation decreases. 

Norway's core inflation to climb to 3.0% y/y in line with consensus and Norges Bank's projections but it should be noted that there were abnormally high levels of uncertainty in September, says Danske Bank.