OSLO: Norway's annual inflation rate rose unexpectedly in October, strengthening the country's currency, presenting a surprisingly bullish sign for an economy that has slowed in recent months.
Core inflation, the key figure targeted by the central bank, rose to 2.5 percent in October from 2.4 percent in the previous month, Monday's data from Statistics Norway showed, above forecasts for 2.3 percent in a Reuters poll of analysts.
The Norwegian crown rose 0.7 percent after the inflation figures, hitting a ten-day high against the euro.
Economic growth has slumped in Norway over the past year as oil investments eased, non-oil exporters struggled and households reined in spending.
"It was stronger than we expected but in line with Norges Bank's forecast," said Kjersti Jaugland, an economist at bank DNB. "What surprises us is higher price growth in clothing and shoes and especially in transport."
The new inflation data is not expected to affect the central bank's interest rate view.
"I believe this should not mean too much for Norges Bank ... this inflation is exactly in line with their forecast," said Stein Bruun, chief economist at SEB. "I believe Norges Bank will focus more on the effect of the big drop in oil prices, which can lead to a cut in the growth forecast."
The central bank, which has held its key rate at 1.5 percent since early 2012, said on Oct. 31 that the overall picture of the economy had weakened since it left interest rates unchanged in September.
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