Sweden: Consumer prices increase to flat reading in April following March's multi-year low
May 13, 2014
In April, consumer prices increased 0.4% over the previous month, which was up from the flat reading recorded in March. According to Statistics Sweden (SCB), the result reflected a large jump in prices for airline tickets, as well as higher prices for clothing and fuel.
Consumer prices were flat over the same month last year in April, which marked the highest reading since December 2013 and came after three months of negative results. The 0.6% decline registered in March had marked the sharpest drop since November 2009. Inflation remains below the Central Bank's target of 2.0%. Annual average inflation held steady at March's minus 0.1% in April.
Meanwhile, annual core inflation, defined as the CPI with mortgage rates held constant, increased from a flat reading in March to 0.5% in April.
The Central Bank expects inflation to average 0.6% in 2014 and 2.5% in 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 0.4% in 2014, which is down 0.4 percentage points from last month's forecast. For 2015, the panel sees average inflation at 1.8%.
Author: Carl Kelly, Economist