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Norwegian wage growth is expected to pick up this year, accelerating faster than expected in the Norges Bank's March Monetary Policy Report, the latest quarterly business survey shows that
The survey found that all sectors anticipate activity to rise in the next six months and that the estimate for annual wage growth in 2021 was revised up to 2.7% from 2.3% in the previous, February, report. The March Monetary Policy Report projected 2.4% wage growth in 2021 and 2.6% in 2022, with the survey data suggesting an upward revision is likely in June. Moderate wage growth was one factor cited by policymakers in expecting inflation to fall back to just below the 2.0% target this year, but upside pressure may be emerging.