Norwegian krone rebounds after unexpected increase in core inflation.

Data shows that after unexpected acceleration of basic inflation in Norway in May, the Norwegian krone rebounded against the euro. The year-on-year increase in core inflation in May rose from 3.2% in April to 3.4%. Economists surveyed had previously expected the data to remain at 3.2%. "This will strengthen the view that the Norwegian central bank will raise rates by another 25 basis points to 4.50% later this year," Chris Turner of ING Group said in a report. He stated that due to the rise in energy prices caused by the Iran war, the Norwegian krone has been a major beneficiary and is expected to continue to perform well. Data from the London Stock Exchange Group shows that after the data was released, the euro fell by 0.1% to a session low of 10.9326 Norwegian krone, after hitting a seven-week high of 11.0060 Norwegian krone.