Core inflation in Norway for February decreased more than anticipated to 4.9%

According to Statistics Norway (SSB), Norway's core inflation rate fell to an 18-month low in February, reaching 4.9%.

This supports the central bank's anticipation of interest rate reductions later in the year. Finance Minister Trygve Slagsvold Vedum commented positively on the lower inflation rate, stating that it benefits consumers and the broader economy.

The finance ministry has revised its forecast for mainland gross domestic product (GDP) growth in 2022 to 0.9%, up from the previous estimate of 0.8%.

In 2025, mainland GDP is projected to grow by 1.6%. The central bank, which raised its benchmark interest rate to 4.50% in December, suggests that borrowing costs will likely remain stable for some time before decreasing.

The Norwegian crown maintained its value against the euro. Norges Bank, which previously estimated a year-on-year core inflation rate of 5.4% for February, is set to release an updated forecast on March 21. Headline inflation, which includes energy costs and taxes, also declined in February to 4.5%.

However, food prices rose by 6.3% over the past year according to SSB data.