Key facts
- Norway's annual core inflation rate unexpectedly rose to 3.4% in May.
- The core inflation rate in May was 3.22% YoY, an increase from 3.01% YoY in April.
- Core Consumer Prices in Norway reached 103.10 points in May, up from 102.70 in April.
- Norges Bank targets an annual inflation rate of 2%.
- Norges Bank's next policy rate announcement is scheduled for June 18.
Norway's core inflation rate, measured by the Consumer Price Index adjusted for tax changes and excluding energy products (CPI-ATE), unexpectedly rose to 3.4% in May. This figure represents a significant acceleration from the previous month, with the year-over-year rate reaching 3.22% compared to 3.01% in April. Core Consumer Prices also increased to 103.10 points in May from 102.70 in April. This persistent upward pressure on prices complicates the outlook for monetary policy, as Norges Bank, which targets an annual inflation rate of 2%, is scheduled to announce its next policy rate decision on June 18. The central bank uses CPI-ATE as its primary gauge for assessing price stability, making this data point critical for market expectations regarding potential interest rate adjustments.