Norway’s Inflation Accelerates at Fastest Pace Since 2009Saleha Mohsin
Norway’s underlying inflation rate accelerated more than estimated in August, reaching the central bank’s target for the first time since July 2009.
The annual rate, adjusted for taxes and energy prices, rose to 2.5 percent, Statistics Norway said in a statement on its website today. The rate was seen at 1.9 percent, according to the median forecast of 13 economists in a Bloomberg survey. Underlying consumer prices fell 0.1 percent in the month.
“It’s a risk now, certainly, that the bank could hike now,” Steinar Juel, chief economist Nordea Bank AB, said by phone today. “The interest rate path will definitely be lifted.”
Policy makers at Norges Bank held the benchmark deposit rate unchanged at 1.5 percent in June and signaled an increased chance of easing this year. Since then, industrial production and inflation have picked up more than economists predicted, cooling speculation of a rate cut this month.
Norges Bank will publish its next rate decision Sept. 19.
The krone surged 0.8 percent to 7.9031 per euro as of 10:35 a.m. in Oslo.
Overall consumer prices fell 0.1 percent in the month and rose 3.2 percent in the year, the agency said.