Sweden: Consumer prices unchanged in January
February 19, 2013
In January, consumer prices fell 0.8% over the previous month, which contrasted the 0.3% increase recorded in December. According to Statistics Sweden (SCB), the reading was mainly influenced by the reweighting effects of the CPI basket, which took place at the start of the year.
Despite the monthly decrease, inflation was 0.0% in January (December: -0.1%), which was in line with market expectations. At the current level, prices are well below the Central Bank (Riksbank) inflation target of 2.0%. In addition, annual average inflation edged down from 0.9% in December to 0.7% in January.
Meanwhile, the core inflation index - defined as the CPI with mortgage rates held constant - fell 0.7% over the previous month in January, whereas annual core inflation remained stable at 1.0%.
According to its February Monetary Policy Report, the Riksbank expects inflation to average 0.4% this year and 2.1% in 2014 (previously forecasted: 0.3% and 2.3%, respectively).