Norway's January Core Inflation Jumps More Than Expected

By Reuters
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Norway's January Core Inflation Jumps More Than Expected

Norway's core inflation rate jumped in January to its highest level on record, Statistics Norway data showed on Friday, increasing the probability that interest rates will continue to rise.

Core inflation, which strips out changing energy prices and taxes, rose 6.4% year-on-year, exceeding the central bank's 5.9% expectation for January as well as the 6.1% average prediction among analysts polled by Reuters.

'Highest Level Statistics Norway Has Seen'

"This is the highest level Statistics Norway has seen since calculations began in 2001 ... we still see a broad and strong increase in prices of most goods and services when comparing with January of last year," the agency said in a statement.

Global inflation soared last year as the cost of commodities such as energy and food rose sharply, and in most countries the growth in consumer prices remains well above levels targeted by monetary policy makers.

'Core Inflation'

Norges Bank, which aims for core inflation of 2.0%, has hiked its key policy rate eight times since late 2021, raising it to 2.75% from zero, and has said another increase is likely to come at its next policy meeting in March.


The central bank has not revealed, however, whether it intends to raise rates even further, and analysts are closely watching data such as inflation, growth, unemployment and housing prices for clues.

Read More: Norway's Food And Drink Sector Anticipates Redundancies, Study Finds

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