Sweden: Consumer prices return to positive territory
March 11, 2015
In February, consumer prices increased 0.7% over the previous month. The reading was the highest in over four years and contrasted the 1.1% decrease recorded in January. The result was just above market expectations of a 0.6% increase. According to Statistics Sweden (SCB), February’s print mainly resulted from higher prices for fuel and clothing.
Consumer prices rose 0.1% in February over the same month of last year, which contrasted the 0.2% decrease tallied in January. February’s print marked the first price increase after six consecutive annual declines, allaying some of the concern that the economy was stuck in a deflationary spiral. Despite the annual increase in prices, annual average variation in consumer prices in remained at minus 0.2% for the fourth month in a row.
Meanwhile, annual core inflation—defined as the CPI with mortgage rates held constant—increased from 0.6% in January to 0.9% in February.
Author: Carl Kelly, Economist