Core CPI in Norway

Norway's core CPI (KPI-JAE / CPI-ATE) is the consumer price index adjusted for tax changes and excluding energy products. Published by Statistics Norway (SSB), it is the underlying inflation gauge that the Norges Bank uses as its main reference.

SSB strips out energy products (electricity and fuels) from the headline CPI and neutralises the effect of changes in indirect taxes (VAT and excise duties) to isolate the underlying trend. It is released as a monthly year-on-year change.

It is the core inflation reading the Norges Bank tracks when setting interest rates, as it filters out noise from energy prices and tax changes. A hotter-than-expected print reinforces expectations of higher-for-longer rates and tends to support the krone.

By excluding energy it can understate genuine inflationary pressure when that pressure originates in the energy sector, a particular caveat for Norway as a major oil and gas exporter.