Norway’s core inflation unexpectedly accelerated in February, raising concerns that the central bank may hold off on significant interest rate cuts this year.
Key Highlights:
- Core Inflation Rate: Climbed to 3.4% year-on-year, up from 2.8% in January.
- Analyst Expectations: Surpassed the 2.9% forecast in a Reuters poll.
- Norges Bank Projection: Expected inflation to ease to 2.7%, but the actual figure was higher.
The unexpected rise in core inflation—excluding energy prices and tax changes—suggests that Norway’s monetary policy may remain tighter for longer, with fewer rate cuts than previously anticipated.
Market watchers will now closely follow Norges Bank’s next move as it assesses inflationary pressures and their impact on the country’s economic trajectory.
