Norway’s December core price is lower than expected According to Reuters

OSLO (Reuters) – Norway’s core inflation rate fell more than expected in December, Statistics Norway (SSB) data showed on Friday, supporting forecasts that rates of profits will begin to decline this year.

Core inflation, which excludes changes in energy prices and taxes, stood at 2.7% year-on-year, down from 3.0% in November and below the 2.8% expected by Reuters analysts.

Norges Bank expected core inflation of 2.8%.

Norges Bank in December kept interest rates at a 16-year high of 4.50% and said it planned to cut rates three times by 2025, down from four cuts previously seen. with the first reduction expected in March.

The central bank, which is targeting a key rate of 2.0%, said at the time that it expected the policy rate to drop to 3.75% by the end of 2025, due to optimism about the rate cut. world currency.

Norges Bank is scheduled to make its next policy rate announcement on January 23.

The price of food and beverages rose by 4.0% year-on-year, making it the biggest contributor to inflation, SSB data showed.

Headline inflation, which includes changes in energy costs and taxes, decreased in December to 2.2% from 2.4% in November, while analysts in a Reuters poll had expected a reading of 2.5%.