back to top
InternationalNorway inflation moderates more than forecast in August, supporting chance of interest...

Norway inflation moderates more than forecast in August, supporting chance of interest rate cut by central bank

Date:

Norway's consumer prices rose at a slower pace than forecast in August, providing further backing for the central bank's signal of an interest rate reduction in September.

The core inflation rate, which excludes volatile food and energy items, eased to 4.5% last month – below analyst expectations of 4.7% and the lowest level since February 2021. Headline inflation also moderated, slowing to 3.9% and representing a six-month low.

The softer inflation print was driven by declines in electricity and fuel costs. This stronger-than-expected disinflationary trend should help reinforce Norges Bank's view that borrowing costs can be reduced to aid the .

While wage growth and currency fluctuations continue posing upside risks, cooling price pressures strengthen the case for policy easing. Most analysts concur that these inflation figures increase the likelihood of Norway's central bank delivering its first rate cut in over a decade this coming month.

The modest reaction in the krone reflects markets still see a near 50-50 chance of a September cut. The currency has weakened significantly in 2022, boosting import costs and domestic inflation. How it performs in response to major central bank decisions will be a key determinant of Norway's monetary policy path.

Northlines
Northlines
The Northlines is an independent source on the Web for news, facts and figures relating to Jammu, Kashmir and Ladakh and its neighbourhood.

Share post:

Popular

More like this
Related

Lady Gaga teases new music and discusses potential reunion with Beyoncé

Lady Gaga teases new music and discusses potential collaboration...

Two missing climbers found dead near Mount Everest top, Sherpa guide not found

A guide named Nawang Sherpa, who was accompanying Kenyan...

Passengers on Singapore Airlines Suffer Spinal and Brain Injuries, with Some in ICU

Fatal turbulence on Singapore Airlines flight leads to spinal...

Prince Harry and Meghan Markle’s departure leaves Kate Middleton ‘deeply upset’ due to…

Prince William and Kate Middleton face added stress from...