Norwegian headline inflation eases slightly in November

Norwegian headline inflation eased a bit in the month of November. On a year-on-year basis, the consumer price inflation came in at 2 percent. In all, inflation has been consistent with Norges Bank’s forecasts in the last three months.

Meanwhile, core inflation rate slowed down to 2 percent year-on-year from 2.2 percent in the prior month. This is consistent with Norges Bank and slightly higher than expected before.

Food prices growth came in lower than last year, pulling down core inflation year-on-year by 0.16 percentage points. Moreover, airfares dropped as anticipated. Nevertheless, some subcomponents such as culture and recreation surprised to the upside.

“During the past three months, core inflation has been broadly in line with Norges Bank’s forecasts. Hence, inflation should not contribute to any changes in the new interest rate path”, said Nordea Bank in a research report.