Norway July Core Inflation Holds Steady at 2.7 Percent

Norway's underlying inflation rate remained unchanged at 2.7% in July, according to data released by Statistics Norway. The figure was primarily driven by food costs and came in lower than both the 2.9% median forecast from Bloomberg economists and the 3.3% projection previously set by the central bank in June.

While core inflation remained stable, headline inflation rose to 3.0% due to increasing electricity costs. This stability in the underlying rate suggests that Norges Bank will likely maintain its key interest rate at 4.25% during its meeting later this week. The data also reduces the probability of a rate hike in September, although inflation has remained above the central bank's 2% target for more than five years.

The Norwegian krone eased against the euro following the release of the inflation data.