NORWAY

摘要

Inflation leapt to 4.3% (y-o-y) in July, from the 3.4% rate posted in June, on the back of higher food and fuel prices. Inflation is expected to remain above the Norges Banks' 2.5% target throughout 2008 and 2009 as the tight labour market drives wage increases (despite decelerating productivity). This should exacerbate price pressures. With consumption faltering in the face of a weakening housing market, tighter credit access and high inflation, our panel has downgraded its 2008 consumption forecast this month. However, with the economy supported by high oil prices, GDP estimates have improved.