Norwegian Inflation Data Main Event

Published 06/05/2017, 05:55 AM

In Sweden , the week ahead contains only one thing of any major interest and that is the release of industrial data (orders, production, etc) on Wednesday at 09.30 (CEST).

In Norway , the week's most important release will be inflation for May. After strong disinflation since last summer, we have seen a degree of stabilisation in core inflation over the past two months. It has nevertheless been a fair bit lower than Norges Bank projected in the March monetary policy report.

In May, base effects will still, in isolation, pull down the annual rate of increase in consumer prices. But on the other hand, food prices and especially airfares seem to have increased more than in May last year. We therefore expect core inflation to slow from 1.66% y/y in April to 1.5% in May.

Meanwhile, Monday's housing prices may well show the first fall m/m since February last year. The combination of more restrictive bank lending practices and an increased supply of properties has brought a better balance in the housing market, including in Oslo.

In Denmark , Friday brings foreign trade and balance of payments data for April. The current account surplus climbed to DKK17.6bn in March, boosted by higher exports of both goods and services, and it will be exciting to see whether this continues in April. Otherwise, housing prices for March are due on Tuesday, with industrial production for April and bankruptcies and repossessions for May out on Wednesday.

To read the entire report Please click on the pdf File Below

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