Sweden: Consumer prices decline again in August
September 11, 2014
In August, consumer prices decreased 0.1% over the previous month, which was up from the 0.3% decrease recorded in July. According to Statistics Sweden (SCB), the reading was driven mainly by a drop in prices for package holidays, as well as lower prices for food and fuel.
Consumer prices were down 0.2% in August over the same month last year, which was below the flat reading registered in July and marked the sixth negative reading in the past year. Inflation remains well below the Central Bank’s target of 2.0%. Annual average variation in consumer prices held steady at minus 0.1% for the eleventh straight month.
Meanwhile, annual core inflation, defined as the CPI with mortgage rates held constant, edged down from 0.6% in July to 0.5% in August.
Author: Carl Kelly, Economist