Norway's core inflation hits highest level in 2 decades

OSLO Reuters -- Norway's core inflation went up in July to its highest level in more than two decades, exceeding forecasts as the costs of food soared 7.6%, according to the data from Statistics Norway on Wednesday.

Core inflation, which strips out changing energy prices and taxes, rose 4.5% year-on-year, up from 3.6% in June, beating expectations in a Reuters poll of analysts who predicted price growth of 3.8%.

Headline inflation, which also includes energy prices, rose to 6.8%, while analysts had predicted a rise of 6.3%.

Norway's crown currency was trading at 9.91 against the euro at 0603 GMT on the news, from 9.93 a day before the data release.

Norway's central bank is due to announce its latest decision on its interest rate next week. It wants core inflation to be 2.0%.

Norges Bank's monetary policy committee is expected to raise rates for a third time this year, but economists disagree on whether the hike will be for 25 basis points bp like it did in March or 50 bp as it did in June.