(Bloomberg) -- Norwegian households see quicker inflation over the next year than they expected a quarter ago, contrasting with recent evidence of easing price pressure in the Nordic nation.
Households now see consumer-price growth at 3.1% in a year’s time, compared with 2.8% previously, according to a quarterly survey commissioned by the central bank. Annual inflation over the next two to three years is forecast at 4.1%, up from 4.0% seen in previous survey, according to a survey conducted by Ipsos.
The figures follow inflation data that has consistently undershot Norges Bank’s forecasts this year thanks mainly to lower imported inflation. Still, the recent weakening of the krone is adding uncertainty about the outlook for price developments, which was a key reason for Norges Bank policymakers last week to signal borrowing costs will remain at a 15-year high “for some time ahead.”
Labor market organizations now see price increases of 3.5% 12 months ahead, versus 4.1% seen in previous quarter. They project wage growth of 5.1% this year, up from 5.0% in the previous quarter.
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