Core inflation is below Norges Bank forecast. Not that important
As always there were some surprises, but the main picture was as we expected. Clothes and shoes pulled up after the sharp drop the previous month. That is the main reason why core inflation rose from 2.2% to 2.4% in September. The reason why inflation did not rise as much as consensus and Norges Bank expected is probably food prices. Prices fell m-o-m contrary to the normal seasonal pattern.
We would not do too much out of today’s figure even though coreinfltion was 0.2% points below ist forecast. It is only one month and inflation is volatile. Add to this that Norges Bank has given less weight to inflation different from forecast lately.
Details:
- September core inflation at 2.4% up from 2.2% the previous month
- Norges Bank’s and consensus 2.6% while Nordea was 2.4
Nordea