Sweden: Annual consumer prices fall in April
May 14, 2013
In April, consumer prices fell 0.2% over the previous month, which contrasted the 0.4% rise tallied in March. According to Statistics Sweden (SCB), the reading was mainly influenced by price decreases for fuels as well as for package holidays.
As a result of the monthly decrease, annual consumer prices fell 0.5% in April (March: 0.0%), which exceeded market expectations of a 0.2% decline. At the current level, inflation is well below the Central Bank's (Riksbank) target of 2.0%. Annual average inflation inched down from 0.4% in March to 0.3% in April.
Meanwhile, the core inflation index - defined as the CPI with mortgage rates held constant - fell 0.2% over the previous month in April, while annual core inflation fell to 0.5%, the lowest level in more than nine years.
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 0.5% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, the panel sees average inflation at 1.7%.