Wires

INSTANT VIEW 1-Norway's Sept core CPI slows, above forecasts

OSLO, Oct 10 (Reuters) - Norway's core inflation slowed inSeptember but came a touch above expectations while headlineinflation was in line with forecasts, data showed on Wednesday.

The consumer price index (CPI) excluding volatile energyprices rose 1.1 percent year-on-year, while analysts hadforecast a rise of 1.0 percent.

Headline inflation meanwhile came to an annualised 0.5percent, meeting expectations.

Producer prices rose 1.4 percent year-on-year, slowing from4.4 percent growth in August.^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^NORWAY CONSUMER PRICES (pct) Sept 2012 Aug 2012 Sept 2011Core CPI year/year 1.1 1.2 1.2Core CPI month/month 1.1 -0.7 1.2Headline CPI year/year 0.5 0.5 1.6Headline CPI month/month 0.9 -0.4 0.9Index (base 1998) 131.2 130.0 130.6NORWAY PRODUCER PRICES Sept 2012 Aug 2012 Sept 2011Figures (percent)Year-on-year change 1.4 4.4 15.3Month-on-month change -1.1 2.3 1.8Index (base 2000) 243.5 246.1 240.1

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

MARKET REACTIONThe Norwegian crown

stood at 7.3760 against theeuro after inflation and PPI data at 0805 GMT, a touch strongerfrom 7.3800 just before the data was released.

ANALYST COMMENTS

IDA WOLDEN BACHE, MACRO ECONOMIST AT HANDELSBANKEN

"Core inflation was a little higher than expected, but notdramatically.

"The rise in prices for food and clothes was as expected.

"Inflation is still below Norges Bank's estimate and lowinflation will in isolation suggest a lower rate path inOctober, but today's numbers are not strengthening such anargument further.

"We expect the first hike in March 2013 and we will not makeany changes based on these figures.

(Reporting by Oslo newsroom)((+47 2293 6977))Keywords: NORWAY CPI/

Related Tags