Sweden: Consumer prices drop again in February
March 11, 2014
In February, consumer prices rose 0.4% over the previous month, which contrasted the 1.2% fall recorded in January. The figure marked the highest increase in a year. According to Statistics Sweden (SCB), the result came on the back of lower prices for transport and accommodation. Consumer prices fell 0.2% over the same month last year. The figure met market expectations and mirrored the drop recorded in January, which had marked the sharpest fall since May 2013. Annual inflation is still well below the Central Bank's target of 2.0%. In addition, annual average inflation remained at January's minus 0.1% in February. Meanwhile, annual core inflation defined as the CPI with mortgage rates held constant, was stable at the previous month's 0.4%. The Central Bank expects inflation to average 0.6% in 2014 and 2.5% in 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 1.0% in 2014, which is down 0.2 percentage points from last month's forecast. For 2015, the panel sees average inflation at 2.0%.
Author: Dirina Mançellari, Senior Economist