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)