2 July 2024 at 11:00 Food prices slow down faster in the euro countries than in Norway Price growth in the countries that use the euro was 2.5 per cent in June, compared with June last year. This is shown by figures from the EU’s statistics agency Eurostat. This is a far weaker price increase than in Norway in the last year. For example, food prices in the euro countries were 2.5 per cent higher than a year ago – that is less than half of the price increase in Norway. In May this year, the price increase was 2.7 per cent, compared with the same month last year. Like Norges Bank, the European Central Bank (ESB) also steers towards a target of an annual price increase of approximately 2 per cent. Price inflation in Europe has moderated. That is why the ECB lowered the key interest rate from 4 to 3.75 per cent in June. It was the first time the central bank lowered the interest rate since 2019. For Norges Bank, it is important what foreign central banks do with their key interest rate. It is difficult for Norges Bank to cut interest rates if foreign central banks do not, because this could lead to a weakening of the Norwegian krone. – The higher inflation stays in the eurozone, the more the ECB will be reluctant to lower interest rates. And the more it can affect Norwegian interest rates, which may remain high for longer, says chief economist Kjersti Haugland at DNB. DNB believes that the European Central Bank will come up with a new interest rate cut in September and December this year.
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Food prices slow down faster in the euro countries than in Norway – Latest news – news
