fxstreet.com 10 Feb, 2021 06:45 am

Inflation day

Inflation day
Today is the big inflation day. Common for the January releases published today will be that new 2021 weights will distort the inflation measure. We g

For one thing, prices rose unexpectedly in January last year, and this base effect would pull the annual rate of core inflation down.On top of this, Statistics Norway have adjusted the weights in the CPI to capture the big shift in consumption patterns brought on by the coronavirus pandemic, and we estimate that this will pull core inflation down around 0.All in all, we expect core inflation to slow from 3.We expect an unchanged rate path and we will look for the distribution for QE across assets moving into Q2, see more below.

At the same time the Riksbank should specify the distribution for QE across assets moving into Q2.2% y/y in January.

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