A cyclical recovery took hold last year, driven by policy support and recovering real incomes. Real GDP growth picked up to 1.5 percent in 2025. Inflation has declined since August 2025, partly reflecting the past appreciation of the krona. Annual headline inflation fell to 0.8 percent in April, reflecting the impact of several temporary measures, such as the lower VAT rate on food. The presence of multiple temporary factors, combined with uncertainty about the persistence of underlying trends and shocks complicates the measurement of core inflation [...]