MNI BRIEF: Mixed Messages For Norges Bank in Jan Price Data​​​

There were mixed messages for the Norges bank in the January inflation data published Wednesday, as headline inflation spiked to 2.5%, above both December's 1.4% and the consensus expectation of a rise to 1.8%. However, the Norge Bank targets the core CPI-ATE rate which fell from 3.0% last month. to 2.7% in January. Although lower, the rate is above the central bank's 'close to 2% over time' target for a 13th consecutive month.

But this will now likely fade as 2020's krone weakness has reversed course and will likely be a drag on prices going forward, helping the Norges Bank meet its forecasts laid out in January.