Norway’s Core Inflation Slowdown Backs Faster Easing Bets

Norway’s underlying inflation rate fell more than expected at the end of last year, reducing chances of more monetary tightening and suggesting there’s a chance interest-rate cuts start earlier than policymakers have signaled.

The core inflation rate, which excludes volatile items such as energy, fell to 5.5% in December — the lowest level in 15 months, according to Wednesday data from the statistics office which highlighted lower food and clothing prices. That compares with the 5.6% forecast by analysts and by Norges Bank. Headline inflation was unchanged, also lower than estimates.