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11 May 2015
Norway’s inflation figures in the limelight – Danske Bank
FXStreet (Edinburgh) - Senior Analyst Morten Helt at Danske Bank remarked the significance of today’s release of the CPI figures in the Norfic economy.
Key Quotes
“The weaker krone has kept inflation around 2-2.5% for the past two years but it will probably come down as capacity utilisation falls and wage growth slows”.
“In the short term, though, the slide in the krone last autumn will be pushing up prices for imported consumer goods, leading to slightly higher core inflation”.
“There was a surprisingly big drop in food prices in March, which we suspect may be down to special offers ahead of Easter and will therefore reverse partially or completely in April”.
“On the other hand, airfares rose abnormally quickly in March, which may be due to Easter but also to the strike at Norwegian, and we expect them to fall back again”.
“The outlook for core inflation is therefore uncertain but we are assuming that the annual rate will be unchanged at 2.3%”.
Key Quotes
“The weaker krone has kept inflation around 2-2.5% for the past two years but it will probably come down as capacity utilisation falls and wage growth slows”.
“In the short term, though, the slide in the krone last autumn will be pushing up prices for imported consumer goods, leading to slightly higher core inflation”.
“There was a surprisingly big drop in food prices in March, which we suspect may be down to special offers ahead of Easter and will therefore reverse partially or completely in April”.
“On the other hand, airfares rose abnormally quickly in March, which may be due to Easter but also to the strike at Norwegian, and we expect them to fall back again”.
“The outlook for core inflation is therefore uncertain but we are assuming that the annual rate will be unchanged at 2.3%”.