Sweden: Annual consumer prices fall again in May
June 11, 2013
In May, consumer prices rose 0.2% over the previous month, which contrasted the 0.2% decline tallied in April. According to Statistics Sweden (SCB), the reading was mainly influenced by price increases for food, furnishings and household equipment, fuel as well as for restaurants and accommodation.
Despite the monthly increase, annual consumer prices fell 0.2% in May (April: -0.5%), which was above market expectations of a 0.3% 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 0.3% in April to 0.2% in May.
Meanwhile, the core inflation index - defined as the CPI with mortgage rates held constant - rose 0.2% over the previous month in May, while annual core inflation edged up to 0.7%.
According to its April Monetary Policy Update, the Central Bank expects inflation to average 0.1% this year and 1.4% in 2014. FocusEconomics Consensus Forecast panellists expect inflation to average 0.4% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, the panel sees average inflation at 1.6%.