High inflation in Norway is expected to prompt another interest rate increase this year, according to Statistics Norway’s latest economic survey. The report cites recent price rises driven by higher energy and commodity costs from the Middle East conflict and a 4.4 % wage settlement. Consumer‑price inflation is projected to fall from 3.2 % this year to about 2 % by 2029, while real wages are expected to rise modestly. The central bank raised its key rate to 4.25 % in May and may hike it again in the autumn. The central bank is expected to start cutting rates from mid‑2027 as inflation slows. Residential construction remains weak, and unemployment is slightly above 4 % according to the Labour Force Survey.
Source: Statistics Norway (Statistisk sentralbyrå).
Text/data reproduced from https://www.ssb.no/.
Licence: Creative Commons Attribution 4.0 International (CC BY‑4.0).
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