Norway Inflation Slows More Than Forecast, Denting Hike Plan

  • Headline and core price growth both declined in September
  • Data casts doubt on Norges Bank’s plan for more tightening

Shoppers walk along Karl Johans gate, the main shopping street in Oslo.

Photographer: Odin Jaeger/Bloomberg
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Norway’s inflation slowed more than expected last month, adding to evidence of a cooldown in the Nordic economy and reducing the chance of one more quarter-point rate hike by the central bank.

The core inflation rate, watched more closely by analysts as a better indicator of Norges Bank’s actions, declined to 5.7% in September, according to a statement from the statistics office on Tuesday. That compares with a 6.1% forecast by analysts and Norges Bank. Headline price growth also slowed to a 20-month low of 3.3%.