Norway's May core inflation rises unexpectedly to 3.4%

OSLO - Norway's annual core inflation rate rose unexpectedly in May, Statistics Norway (SSB) data showed on Wednesday, supporting expectations interest rates could increase further this year.

Core inflation, which strips out changing energy prices and taxes, stood at 3.4% year-on-year, up from 3.2% in April, and above the 3.2% expected by analysts in a Reuters poll.

Norges Bank had expected core inflation of 3.3%.

Norway's currency, the crown, strengthened to 10.97 against the euro by 0602 GMT, from 11.00 ahead of the data release.

Norway's central bank last month raised its policy interest rate by 25 basis points to 4.25%, moving sooner than analysts had expected, to quell resurgent inflation driven by increasing wages and high energy prices.

The central bank's decision stood in contrast with those of other major central banks, which have argued that more time and data were needed to gauge the impact of the war in Iran on the longer horizon that is relevant for policymakers.

Norges Bank, which targets inflation of 2%, is scheduled to make its next policy rate announcement on June 18.

(Reporting by Louise Rasmussen, editing by Terje Solsvik)

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This story was originally published June 10, 2026 at 2:09 AM.