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

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

The consumer price index (CPI) excluding volatile energy prices rose 1.1 percent year-on-year, while analysts had forecast a rise of 1.0 percent.

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

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

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MARKET REACTION The Norwegian crown

stood at 7.3760 against the euro after inflation and PPI data at 0805 GMT, a touch stronger from 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 not dramatically.

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

"Inflation is still below Norges Bank's estimate and low inflation will in isolation suggest a lower rate path in October, but today's numbers are not strengthening such an argument further.

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

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