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Tuesday, June 18, 2024

Lower inflation unlikely to lower interest rates

Norway’s inflation rate dipped to 3.6 percent last month, but few economists think that’s enough of a decline to prompt a reduction in Norwegian interest rates. Core inflation, which measures price hikes excluding energy rates and government-imposed fees, remained at 4.4 percent.

“Even though inflation fell for the fourth month in a row, the prices of most goods and services are still higher than they were at the same time last year,” noted Espen Kristiansen of state statistics bureau SSB. Prices at the grocery store have risen the most.

“The probability of an interest rate cut in December rather than September has strengthened,” Kjersti Haugland, chief economist at Norway’s biggest bank, DNB, told newspaper Aftenposten. She earlier predicted an interest rate cut this fall, but has retreated along with many other economists.

NewsinEnglish.no staff

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