Norwegian inflation likely to have come in below central bank’s projection in April

Norway’s inflation is likely to have come on the downside to Norges Bank. According to a Nordea Bank research report, core inflation is expected to have accelerated to 1.8 percent year-on-year from March’s 1.7 percent. Norges Bank expects inflation to have come in at 1.9 percent.

As Easter had come in March last year and in April this year, it gives two opposing impacts on year-on-year growth in core inflation. Food prices are likely to have brought down inflation. Meanwhile, airfares are expected to have risen in April, as opposed to the fares rising in March last year.

One should be careful in drawing rapid conclusion about inflation in Norway based on the April figure, stated Nordea Bank.