Norwegian Inflation Accelerates After Central Bank Cuts Rates
Norwegian underlying inflation accelerated for the first time in five months after the central bank cut interest rates to stimulate growth.
The annual underlying inflation rate, adjusted for taxes, fees and energy prices, rose to 1.3 percent in January from 1 percent a month earlier, Oslo-based Statistics Norway said today. That compares with the 1.2 percent median estimate in a Bloomberg survey of 12 economists. Underlying consumer prices fell 0.6 percent from December, the office said.
The central bank cut its benchmark interest rate by 50 basis points to 1.75 percent in December, the first reduction since June 2009, as slowing growth in continental Europe weighs on exports. Norway’s manufacturing industry grew in January for the first time in three months, while retail sales rose an annual 2.6 percent in December and credit growth was 6.7 percent.
Norges Bank policy makers meet on March 14 to decide on interest rates.
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