Sweden: Annual decline in consumer prices quickens in December
January 13, 2015
In December, consumer prices increased 0.2% over the previous month. The reading contrasted the 0.1% decline recorded in November as well as the 0.1% drop that the markets had expected. According to Statistics Sweden (SCB), December’s print mainly resulted from higher prices for international flights, as well as for package holidays. Conversely, fuel and interest rate costs recorded lower prices than the previous month.
Consumer prices fell 0.3% in December over the same month of the previous year, which followed the 0.2% decrease tallied in November. As a result, inflation remained in negative territory and ended 2014 well below the Central Bank’s target of 2.0%. Despite the annual drop in prices, annual average variation in consumer prices remained unchanged at November’s minus 0.2% in December.
Meanwhile, annual core inflation—defined as the CPI with mortgage rates held constant—inched down from 0.6% in November to 0.5% in December.
Author: Cecilia Simkievich, Economist