PHOTO
Norway's inflation rate fell more than expected in September, Statistics Norway (SSB) data showed on Tuesday, easing pressure to hike interest rates and weakening the crown currency against the euro and dollar.
Core inflation, which strips out energy prices and taxes, stood at 5.7% year-on-year, down from 6.3% in August due to a drop in food prices and lagging the 6.1% average forecast of analysts polled by Reuters.
The Norwegian crown weakened to 11.44 against the euro by 0655 GMT from 11.41 ahead of the data release. Against the dollar, the crown dropped to 10.84 from 10.81.
Headline inflation, meanwhile, stood at 3.3%, down from 4.8% year-on-year in August as energy costs fell and well below a poll forecast of 4.0%.
The price of food fell by 1.2% in September from August but was still up 7.4% over the 12 months since September 2022, SSB data showed.
Norges Bank raised rates last month by 25 basis points to 4.25% and said it planned to hike again in December to quell inflation.
The central bank had projected year-on-year core inflation of 6.2% and headline inflation of 4.2% for September, and the downside surprise in the September numbers could lead Norges Bank to rethink plans for a year-end rate hike, economists said.
"We believe Norges Bank will stay put in December," brokers Nordea Markets said in a note. (Reporting by Terje Solsvik, editing by Anna Ringstrom and Louise Heavens)