Expensive flights contributed to an increase in the consumer price in May.The inflation was 0,3 percent highter in May than in April, while the annual growth was at 3.4 percent, according to figures from Statistics Norway.
The underlying inflation (CPI-ATE) of the last twelve months, which is an important measure in relation to the setting of interest rates from Norges Bank, is at 3.2 percent. It is marginally higher than many economists expected it to be, but in line with Norges Bank’s projections.
The economists at DNB Markets still believe we are set for further interest rate cuts in the fall. Inflation has been slightly higher than it was supposed to be for some time, but the weak growth outlook for the Norwegian economy is more important for monetary policy now, according to their ranking.
In addition to the increase in the prices for plane tickets, there was also a slight increase in food prices. The opposite was expected, given that there was a “price war” on food around 17 May.
At the same time, the prices of books fell by 10.8 per cent from April to May, according to figures from Statistics Norway.
Source: NTB scanpix / Norway Today