September 16, 2021
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Inflation expectations start stretching

  • New price shocks stretch the peak and persistence of excess inflation. Although we still see this pressure as transitory, we are mindful of the risk expectations might shift. The responsiveness of inflation forwards to spot changes is most concerning.
  • Wage negotiations will be the ultimate check, albeit lagging behind expectations and our statistical measures of underlying inflation. Wages corroborate hawks in Norway, less dovish pressure in the UK and Sweden, while the Euro area remains in a low rut.

September 14, 2021
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Norway: no need to wear Green

  • Norway’s election results show a swing to the left, with Labour, Centre and Socialist Left having a combined majority of five in the new parliament. Crucially, these three parties can govern without the support of the Green Party.
  • We see limited implications of the result for investors, with the Norges Bank still set to raise the policy rate on 23 September.

September 10, 2021
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FLASH: Norway inflation in August-21

NO CPI 3.38 % (vs 3.11 %)