Norway’s core inflation likely to remain at 3.3 pct in April, slightly below central bank’s estimate

Norway is due to release its inflation data for April on 10 May. Core inflation for the month is likely to come in slightly lower than Norges Bank’s estimate of 3.4%, according to Nordea Bank. Various food prices are expected to have considerably recovered in April. But the rebound is likely to be offset by decline in airfares, noted Nordea Bank.

In March, the overall core inflation had reached 3.3%, slightly lower than February’s figure. In April, core inflation is expected to remain at 3.3%, said Nordea Bank. It will be 0.1 percentage points lower than the central bank’s estimate. Usually, such difference between the central bank’s forecast and the actual figure does not have much of an effect on the rate path. Moreover, the Norges Bank has mentioned earlier that monetary policy is not responding much to the news that “pushes down on the interest rate path”.