Sweden Inflation February 2019


Sweden: CPI inflation steady in February, CPIF inflation dips

March 12, 2019

Consumer prices in Sweden rose 0.7% in February, contrasting January’s 1.0% decline, according to data released by Statistics Sweden (SCB). February’s price increase was mainly driven by higher prices for food and non-alcoholic beverages; clothing and footwear; and transport.

The CPI with interest rates held constant (CPIF) dropped from 2.0% in January to 1.9% in February, within the Central Bank’s 1.0%–3.0% tolerance band but once more undershooting the Bank’s expectations. Core CPIF inflation—which excludes volatile energy costs—was unchanged at 1.4%, while CPI inflation was stable at 1.9%.

It remains to be seen whether at the Riksbank’s next meeting on 24 April, lackluster inflation in recent months leads to a change in forward guidance over monetary policy; a rate hike is currently signaled for H2 2019.

According to Torbjörn Isaksson, economist at Nordea: “All in all, February CPIF was lower than we had expected but in line with our long-held view of low inflation being a long-term challenge for the Riksbank. The next rate hike is distant, we think, and the low inflation in the beginning of the year reinforces that view.”

FocusEconomics panelists currently expect CPI inflation to average 1.9% in 2019 and 2.0% in 2020, and CPIF inflation to average 2.0% in 2019 and 1.9% in 2020.

Author:, Economist

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Sweden Inflation Chart

Sweden Inflation February 2019

Note: Year-on-year and month-on-month variation of consumer price index in %.
Source: Statistics Sweden (SCB).

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