(Bloomberg) -- Norwegian inflation unexpectedly slowed in March, casting doubt on the central bank's plan to start tightening interest rates after the summer.
Underlying consumer prices rose 1.2 percent in March from a year earlier, below the 1.4 percent estimated by analysts. Headline inflation was unchanged at 2.2 percent, missing the 2.4 percent estimate.
Norway Signals Faster Rate Increases After Price Target Shakeup
Underlying inflation is falling deeper below the central bank's newly minted 2 percent target. Policy makers have flagged they will start raising rates “after summer” in anticipation a pick up in economic growth and falling unemployment will push up price growth.
The Norwegian krone fell 0.16 percent to 9.6075 per euro as of 8:08 a.m. in Oslo.
To contact the reporter on this story: Sveinung Sleire in Oslo at ssleire1@bloomberg.net.
To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net.
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