The Trader's Guide to the Euro Area: Economic Indicators, the ECB and the Euro Crisis

Chapter 14

Norway

The Norges Bank has an explicit inflation target. It stands at 2.5% and refers to headline consumer price inflation. The central bank also lacks an explicit time horizon for a return of inflation to its target when deviations occur. It will “depend on disturbances to which the economy is exposed and the effects on prospects for the path for inflation and the real economy.”1

The central bank tends to focus on core readings of inflation in practice. It states, “the direct effects on consumer prices resulting from changes in interest rates, taxes, excise duties and extraordinary temporary disturbances are not taken into account.”2

Statistics Norway publishes measures of underlying inflation, which assist with the implementation ...