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A bigger than expected slump.

Norway’s annual inflation rate dipped to its lowest since May last month, coming in at 2.8 per cent from 3.5 per cent at the start of the year. Analysts had expected a reading of around 3 per cent.

The country’s January inflation basket was pushed down by the falling price of clothing and furniture and marked the fourth consecutive month of softening annual inflation. It was the lowest rate of price rises since May.

Inflation however remains above the Norwegian central bank’s target of 2.5 per cent. The Norges Bank maintains the highest benchmark interest rate of its Nordic peers and is the only monetary authority not to have slashed rates into negative territory.

Core inflation in the country, which strips out volatile energy prices, also softened to 2.1 per cent – undershooting a forecast of 2.8 per cent.

Chart via Bloomberg

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