Sweden: Annual consumer prices decline for third straight month in June
July 11, 2013
In June, consumer prices fell 0.2% over the previous month, which contrasted the 0.2% rise tallied in May. According to Statistics Sweden (SCB), the reading was mainly influenced by price decreases for clothing as well as for electricity.
As a result of the monthly decrease, annual consumer prices fell for the third straight month and declined 0.1% in June (May: -0.2%), which was above market expectations of a 0.2% decline. At the current level, inflation is well below the Central Bank's (Riksbank) target of 2.0%. In addition, annual average inflation inched down from 0.2% in May to 0.1% in June.
Meanwhile, the core inflation index - defined as the CPI with mortgage rates held constant - fell 0.1% over the previous month in June, while annual core inflation edged up to 0.9%.
According to its July Monetary Policy Report, the Central Bank expects inflation to average 0.1% this year and 1.3% in 2014. FocusEconomics Consensus Forecast panellists expect inflation to average 0.3% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, the panel sees average inflation at 1.5%.