Jammu, April 10 -- Norway's consumer prices rose at a slower pace than forecast in August, providing further backing for the central bank's signal of an interest rate reduction in September.

The core inflation rate, which excludes volatile food and energy items, eased to 4.5% last month - below analyst expectations of 4.7% and the lowest level since February 2021. Headline inflation also moderated, slowing to 3.9% and representing a six-month low.

The softer inflation print was driven by declines in electricity and fuel costs. This stronger-than-expected disinflationary trend should help reinforce Norges Bank's view that borrowing costs can be reduced to aid the economy.

While wage growth and currency fluctuations continue posing upsid...