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Norway CPI Inflation 3.0% y-o-y (consensus 3.3%) in May-24

- Norway’s CPI inflation rate of 3.0% for May 2024 is below the consensus and previous months’ readings, diverging significantly from the one-year average, suggesting effective policy actions.
- CPI-ATE inflation at 4.1% and PPI inflation at 3.2% reflect sustained underlying inflationary pressures, indicating a need for continued vigilance rather than rushing to cut rates.

Norway Unemployment Rate 4.3% in Apr-24

- Norway's unemployment rate rose to 4.3% in April 2024, the highest since January 2024, reflecting potential issues amid moderate manufacturing growth and flat GDP.
- Economic indicators, such as a PMI of 52.4 and weak retail sales growth, highlight a need for targeted interventions to align job creation with existing economic activities.

Norway CPI Inflation 3.6% y-o-y (consensus 3.5%) in Apr-24

- Norway's CPI inflation slowed from 3.9% to 3.6% year-on-year in April 2024, slightly surpassing market expectations of 3.5%.
- Upside news in core inflation drove the disappointingly small decline as, at 4.4%, it was also 0.1pp higher than expected.

Norway Policy Rate 4.5% (consensus 4.5%) in May-24

• The Norges Bank has maintained the policy rate at 4.5%, aligning with expectations and previous forecasts, to control inflation that is still markedly above the 2% target despite a gradual slowdown.
• Economic activity in Norway is slightly better than expected, with resilient employment but continued low growth. Rising international policy expectations and a weaker krone complicate future monetary policy decisions.
• The Committee is prepared to adjust the policy rate up or down, depending on forthcoming economic data, focusing on inflation trends and economic growth rates.