The Bank of Norway has been slowly but steadily raising rates this year, by a quarter-point at a time. Analysts think another quarter-point rise should be expected when the bank's board meets next month.
That's because consumer prices were up 2.7 percent in October, compared to last year. Norway's statistics bureau SSB also reported Friday that prices rose 0.7 percent when adjusted for taxes and energy prices. Analysts had predicted a rise of 0.6 percent.
Clothes and shoes were more expensive in October, up 2.5 percent from September to October. Clothing prices remain 4.9 percent cheaper, on average, though, than September 2005.
The amounts that Norwegian homeowners pay to homeowner associations (called husleie in Norwegian) also rose more than expected. Since such monthly fees are an important component of housing costs, they weigh heavily in SSB's consumer price index.
The next Bank of Norway interest rate meeting is set for December 13. Norway's key lending rate currently stands at 3.25 percent.
