Sweden: Consumer prices move into positive territory in May
June 11, 2015
In May, inflation rose to 0.3% over the previous month. The result was above the flat reading recorded in April and slightly overshot market expectations of a 0.2% increase. According to Statistics Sweden (SCB), May’s print mainly reflects higher prices for books, package holidays and transportation services.
Consumer prices rose 0.1% in May over the same month of last year, which contrasted the 0.2% decrease tallied in April. May’s print marks a return to inflation, as prices have rebounded from the deterioration observed in April. May’s improvement will also take some pressure off the Central Bank, diminishing the possibility of future policy easing in July in response to April’s relatively sharp deterioration in prices. Despite May’s increase, annual average variation in consumer prices held at April’s minus 0.1%.
Meanwhile, annual core inflation—defined as the CPI with mortgage rates held constant—increased 1.0% in May, which was up from the 0.7% increase tallied in April.
Author: Robert Hill, Economist