🇳🇴 Cable FX Macro Weekly Note: Norway March CPI

**As seen in Risk In The Week report 04/07/23, subscribe at cablefxm.co.uk/reports

February underlying inflation slipped to 5.9% Y/y from the prior 6.4%, this missed estimates of 6.3%. Headline prices fell to 6.3% Y/y from the prior 7.0%, the consensus had seen this metric at 6.8%. On a monthly basis, the largest declines were recorded in clothing and housing, both series printed a third straight month of declines at -0.4% and -0.8%, respectively. Food prices advanced by 1.6% M/m, unchanged from the prior, while underlying inflation increased at the fastest pace since September at 0.7% M/m. Analysts at Swedbank noted that a warmer February sent electricity prices to advance by the slowest annual pace since 2012. They note that the rise in food prices could be an effect of a weaker NOK as a decent amount of consumer groceries are imported, we remind you that the krone was the weakest G10 currency in 1Q 2023. Economists at SEB predict high producer prices will spill over to consumers over the next six months, however, they note that strong base effects from food inflation will lower rates towards the end of the year.