In Norway, food prices have seen a seasonal decline of 1.3% from July to August, according to Statistics Norway.

Despite this drop, the annual increase in food prices remains at 4.5%, significantly higher than the overall inflation rate of 2.6% over the past year.

This general inflation rate is nearly half of what it was the previous year, indicating a positive trend towards the central bank's target of 2%.

However, chief economist Kyrre M.

Knudsen from Sparebank 1 SR-Bank suggests that the Norwegian central bank is unlikely to lower interest rates at its upcoming meeting on September 19. The weaker-than-expected krone is a key factor preventing a rate cut, despite the lower inflation figures.

The central bank has hinted at potential rate cuts in March next year, making the upcoming meeting highly anticipated.