Sweden: CPIF comes in at highest level in over 30 years in December
Consumer price inflation with a fixed interest accelerated to 10.2% in December, above Novembers 9.5%. December’s reading represented the highest inflation rate since May 1991. Looking at the details of the release, the pickup was primarily due prices for housing, water, electricity, gas and other fuels increasing at a stronger rate. In addition, price pressures for food and non-alcoholic beverages rose at a quicker pace. The reading surprised both markets and the Riksbank on the upside, adding pressure to the Central Bank to deliver aggressive hikes in coming monetary policy meetings.
Accordingly, the trend pointed up, with annual average inflation coming in at 7.7% in December (November: 7.2%). Meanwhile, consumer price inflation rose to 12.3% in December, from the previous month’s 11.5%.
Lastly, consumer prices with a fixed interest rate increased 1.88% over the previous month in December, following November’s 0.72% increase. December’s uptick was the highest reading since January 1993.