This is up from 3.3 per cent from September. The increase is 0.7 percentage points. The price of food and non-alcoholic beverages rose by 0.9 per cent, while clothing and shoes fell by 1.1. Weak Norwegian krone In recent years, the Norwegian krone has weakened by around 20 per cent against the euro. The krona has also lost 25 percent against the US dollar. At the same time, several economic experts fear that the weak krone exchange rate could give us higher inflation in the future, and that this could also affect the level of Norwegian interest rates. On Wednesday this week, one euro cost NOK 12.1. This adjusted down to under NOK 12 after a few hours. Reduced price growth in September Prices also rose in September, but far less than both Norges Bank and most economic commentators had expected. The price increase was surprisingly low, and an expectation was created that the increase in interest rates has had the desired effect and that interest rate increases for the rest of 2023 became less likely. On 2 November this year, Norges Bank chose to keep the interest rate unchanged at 4.2 per cent. Central bank governor Ida Wolden Bache announced at the same time that the key interest rate would be reviewed in December. Policy rate The policy rate is Norges Bank’s most important instrument for stabilizing price growth and development in the Norwegian economy. The key interest rate in Norway is the interest that the banks receive on their deposits in Norges Bank up to a fixed amount – a quota. The key interest rate and expectations about future developments in the key interest rate primarily affect the interest rates between banks and the interest level the banks offer on deposits and loans to their customers. Market interest rates in turn affect the krone exchange rate, the prices of securities, house prices and the demand for loans, consumption and investments. Source: Norges Bank
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Prices rose by four percent in October shows the consumer price index cpi – news Møre og Romsdal – Local news, TV and radio
