Norway Inflation Highest Since June 1988; PPI Inflation Eases
Norway’s consumer price inflation accelerated unexpectedly in September to reach its highest level in more than thirty-four years, while producer price inflation eased sharply, data from Statistics Norway showed on Monday.
Consumer price inflation rose to 6.9 percent in September from 6.5 percent in August. Economists had forecast inflation to slow to 6.2 percent.
Moreover, this was the highest inflation rate since June 1988, when prices had risen 7.0 percent.
Prices for food and non-alcoholic beverages alone surged 12.2 percent annually in September. This was followed by a 11.2 percent rise in transport costs.
Utility costs grew 5.8 percent and those for restaurants and hotels rose 8.7 percent.
On a monthly basis, consumer prices moved up 1.4 percent in September, reversing a 0.2 percent drop in August. The expected increase was 0.6 percent.
Core inflation, which excludes energy prices and tax changes, accelerated to 5.3 percent in September from 4.7 percent in the previous month. That was also above the expected rise of 4.9 percent..
The EU harmonized inflation increased to 7.7 percent in September from 7.1 percent in June. Month-on-month, the harmonized index of consumer prices rebounded 1.8 percent.
In a separate report, the statistical office said producer price inflation eased notably to a 13-month low of 52.4 percent in September from 77.3 percent in August.
Prices for energy goods jumped 87.4 percent and those for extraction and related services grew 81.4 percent.
On a monthly basis, producer prices declined 7.2 percent in September, after rising 8.2 percent in the prior month. This was the first fall in five months.
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