Reactions to this morning's higher-than-expected inflation print

Sell-side views after the higher-than-consensus inflation print this morning:

• Nordea: "Food prices were the main reason behind the rise in core inflation, as well as rises on furniture prices and culture... Higher than expected core inflation in December, January and February argue for a faster normalisation of monetary policy... All of these factors combined warrant Norges Bank increasing the key rate four times this year (in March, June, September and December) to 1.5%, as has been our view for a while."
• Swedbank: "Food prices contributed strongly this month with a 4.5% m/m increase. Although food prices tend to be raised a lot in February, this is an unusually large gain... The war in Ukraine has led to higher prices on practically everything... Core inflation will remain above 2% for the remainder of the year and likely closer towards 3% during second half of 2022... both households and businesses will be hit hard by price increase going forward. Markets will add on their expectations from higher inflation print, and probably start pricing in around five hikes this year. Norges Bank will be wise in keeping their hikes more gradual, aiming for four hikes in 2022."