Norway Inflation Rate Climbs to 6-Month High

Norway’s annual inflation rate rose to 3.5% in August 2025, the highest since February, up from 3.3% in July and in line with expectations. The main upward pressure came from housing and utilities (6.3% vs. 4.4% in July), alongside higher inflation for alcoholic beverages and tobacco (4.1% vs. 3.9%) and transport (2.7% vs. 2.4%). In contrast, price growth eased for food and non-alcoholic beverages (5.4% vs. 5.9%), health (3.4% vs. 4.1%), communications (4.1% vs. 5.0%), and recreation and culture (2.9% vs. 3.1%). Clothing and footwear posted a smaller decline (-2.5% vs. -3.1%), while furnishings and household equipment swung into deflation (-0.9% vs. 1.0%). On a monthly basis, the CPI fell 0.6%, the first decline since March, reversing a 0.8% gain in July, also in line with forecasts. The CPI-ATE (adjusted for tax changes and excluding energy products) rose 3.1% year-on-year, matching July’s pace and holding at its highest level since March.