Norges Bank survey shows declining wage growth expectations

A third-quarter survey from Norges Bank reveals that most groups expect lower wage growth this year compared to the previous quarter. Economic experts forecast an average annual wage increase of 4.3 percent, while labor market parties expect 4.4 percent. Households hold a more conservative outlook, anticipating a 3.0 percent increase in wages and pensions over the next 12 months.

Regarding real wages, labor market parties expect a growth of 1.2 percent, which is a 0.2 percentage point increase from the previous quarter.

Inflation expectations also vary by group. Economists and labor market parties anticipate inflation will fall to 3 percent in one year. Households expect inflation to be at 4 percent in a year, a decrease of 0.4 percentage points from the last quarter. In contrast to most other groups, business leaders expect an increase in price growth.