Key Takeaways
- Norway's annual Consumer Price Index (CPI) unexpectedly accelerated to 3.3% in July, surpassing the estimated 3.0% and rising from the previous month's 3.0%.
- The monthly CPI also saw a significant increase, rising by 0.8% in July, compared to a 0.3% rise in the previous period.
- Underlying CPI remained stable year-over-year at 3.1%, meeting expectations, while the monthly underlying CPI rose to 0.8% from 0.5%.
- Norway's Producer Price Index (PPI) including oil recorded a monthly increase of 0.8% in July, a notable rebound from the prior month's -0.3% decline.
- European futures are trading slightly higher, with the EuroStoxx 50 up 0.13%, DAX up 0.18%, and FTSE up 0.03%.
Norway's inflation figures for July have revealed a stronger-than-expected increase in consumer prices, potentially adding pressure on Norges Bank. The headline Consumer Price Index (CPI) on a year-over-year basis climbed to 3.3%, exceeding both the 3.0% estimate and the previous month's 3.0% reading. This acceleration suggests persistent inflationary pressures within the Norwegian economy.
On a monthly basis, the overall CPI rose by 0.8% in July, a significant jump from the 0.3% recorded in the prior month. Similarly, the underlying CPI, which excludes volatile items, also saw a monthly increase of 0.8%, up from 0.5% previously. Annually, the underlying CPI held steady at 3.1%, aligning with market expectations.
Producer prices in Norway also showed signs of a rebound in July. The Producer Price Index (PPI) including oil increased by 0.8% month-over-month, reversing the -0.3% contraction seen in the previous period. Year-over-year, the PPI including oil saw its decline lessen to -0.3%, an improvement from the -1.0% recorded previously.
In broader market movements, European futures opened slightly higher. The EuroStoxx 50 futures gained 0.13%, Germany's DAX futures rose by 0.18%, and the UK's FTSE futures edged up 0.03%. Meanwhile, currency markets are exhibiting mixed signals, with the NZD/USD trading with a negative bias ahead of a key US-China tariff truce deadline. The Australian Dollar showed little movement despite a subdued US Dollar, with market participants awaiting the Reserve Bank of Australia's decision. The EUR/JPY pair advanced above 172.00, as traders anticipate the European Central Bank (ECB) to potentially pause its easing cycle. Gold prices maintained an offered tone, reflecting receding safe-haven demand.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.