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Norway inflation: Core inflation – on the downside to Norges Bank’s forecast
Inflation in May came in lower than in April. Core inflation is now somewhat on the downside to Norges Bank’s forecast, but nothing that will have a big impact. Core inflation in May came in at 2.3% y/y compared to 2.6% in April. Consensus was 2.6% and Nordea was 2.4% while Norges Bank was 2.5%. As expected airfares fell after the sharp Easter related rise in April. It pulled down core inflation (y/y) by 0,15% points. The main surprise to us was food prices which fell 0.9% m/m pulling down core by another 0,15%. We had expected a moderate rebound after the weak Easter related April. If we are to guess most analyst ... (full story)