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Thursday, June 13, 2024

Lower inflation may ward off new rate hike

Norway’s central bank has warned that it may raise interest rates another quarter-point in December, but economists are wondering whether that will be necessary. New figures this week show that inflation has declined, so the bank may reconsider raising rates to curb price growth.

State statistics bureau SSB (Statistics Norway) reports that prices rose 3.3 percent on an annual basis in September. Core inflation, price growth adjusted for changes in energy rates and government fees, was set at 5.7 percent. That was down from predictions of 4- and 6.1 percent respectively.

Prices actually declined an average 0.1 percent from August to September. It’s good news for households struggling with much higher mortgage payments and food prices. Some economists think interest rates may thus have peaked, and may even decline next year.

NewsinEnglish staff

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