Norway's Core Inflation Reaches Historic Speed, Fueling Speculation of Rate Hikes

Norway’s underlying inflation unexpectedly accelerated to a record-high pace last month, cementing expectations that the central bank will prolong its interest rate-hiking campaign beyond the summer.

Core inflation, the measure followed by Norges Bank, accelerated to 6.7% in May from a year earlier, compared with the 6.3% forecast by analysts in a Bloomberg survey and a central bank estimate of 6%. Headline inflation also quickened, defying forecasts of slowdown.

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