Norway’s underlying inflation slowed more than expected last month, countering recent evidence of resilience in the Nordic economy. According to the Consumer Price Index (CPI) reading in Norway, inflation was reported at 3.9% year over year, compared to the expected 4.2% and the previous 4.5%. On a month-on-month (MoM) basis, the data indicated a 0.2% rise, lower than the expected 0.5% increase and consistent with the previous 0.2%.

Norway’s Core Inflation Falls Below Expectations

Data from Statistics Norway on Wednesday showed that Norway’s core inflation rate in March was lower than expected, which supports the central bank’s view. Despite recent optimism regarding the Nordic economy, the softer-than-expected inflation numbers have jolted the Norwegian Krone’s bull run, albeit unlikely to have a significant impact on the higher-for-longer interest rate policy.

The key points from the news are:

• Norway’s underlying inflation slowed more than expected, contradicting recent resilience in the Nordic economy
• The Consumer Price Index (CPI) reading in Norway was reported at 3.9% YoY, lower than the expected 4.2% and previous 4.5%
• On a MoM basis, the data showed a 0.2% rise, below the expected 0.5% increase and consistent with the previous month
• Norway’s core inflation rate in March was lower than expected, according to Statistics Norway
• The central bank’s view is supported by the softer-than-expected inflation numbers
• The Norwegian Krone’s bull run may be impacted by the inflation report
• The lower inflation is unlikely to change the higher-for-longer interest rate policy

Source: Reuters