Explanation of term
Inflation target
Norges Bank operates Norwegian interest-rate policy in accordance with an inflation target. Under the monetary policy provisions, the aim of monetary policy is for annual growth in the Consumer Price Index to be close to 2.5% over time. No account is taken of changes in duties, taxes and other individual temporary disturbances, so Norges Bank uses different inflation targets purged of these factors when operating monetary policy in accordance with the inflation target. See KPI-JAE/CPI-ATE.