Erik Johannes Bruce, analyst at Nordea Markets, notes that Norway’s inflation in June came in close to Norges Bank’s forecast with core inflation remaining unchanged at 2.3% y/y from May.
“Consensus was 2.3% while Norges Bank and Nordea was 2.4%.”
“The main picture was very much as expected. Food prices increased m-o-m and more than last year pulling up core y-o-y.”
“This figure was very much as expected, and Norges Bank will ignore inflation 0.1% point below forecast. Norges Bank will hike in September and we also think it highly likely that it will signal such a hike clearly at the August meeting. However, we are to receive the July inflation figure before that and July has often surprised before.”