FX.co ★ Norway Inflation Eases To 4-Month Low; Producer Prices Fall Further

Norway experienced a decrease in consumer price inflation for the second consecutive month in February, marking the lowest inflation rate in four months. Moreover, producer prices persistently fell significantly, as highlighted by separate reports released by Statistics Norway.

The report showed a year-over-year increase of 4.5% in consumer prices in February, down from the 4.7% increase recorded the month prior. This is contrary to economist predictions which projected the inflation rate to rise to 4.9%.

Additionally, growth in annual prices of food and non-alcoholic beverages had reduced to 6.3% in February, in contrast with the 8.7% increase in January. Expenses for communication services also decreased to 1.4% from 1.8%.

From the previous month, consumer prices in February observed a more moderate rise of 0.2%, lesser than the expected 0.5% and was also slightly slower than the 0.1% increase in January.

Furthermore, February’s core inflation, excluding energy prices and tax modifications, shrunk to 4.9% from 5.3% in January, despite predictions suggesting it would remain static at 5.3%.

A separate report released by the statistical office also demonstrated that February producer prices depreciated by 12.6% from the previous year, following a 12.9% drop in January. It's worth noting that prices have been on the decline since January 2023.

The largest decrease was observed in prices for extraction, related services, and energy goods, which each dwindled by 23.4% from the previous year.

Lastly, on a monthly basis, February's producer prices experienced a 2.5% decrease, following a 3.2% decline in January.