Norwegian CPI was stronger than expected.....>

NORWAY: Norwegian CPI was stronger than expected with ATE picking up to 2.2%Y/Y

(1.9%exp, 1.6%prev) while headline rose to 3.5%Y/Y (3.1%exp,prev).

- The move in ATE was largely driven by three components:

- Food prices rose 1.4%M/M increasing the Y/Y rate from 1.2% to 3.0%.

- Miscellaneous goods and services rose 0.2%/M increasing the Y/Y rate from 1.0%

to 1.4%.

- Alcohol and tobacco rose 1.4%M/M increasing the Y/Y rate from 3.3% to 3.6%.

- EURNOK fell to the low of the day on the back of this release, falling just

below Friday's low of 9.6561 before quickly moving back above this level.

- The Norges Bank is unlikely to react too much to this release when it meets

this week with a rate decision due on Thursday. The fall in oil prices since the

last meeting is likely to remain of greater importance in the near-term.