Sweden Inflation January 2016


Sweden: Inflation climbs to nearly-four-year- high in January

January 14, 2016

In January, consumer prices fell 0.3% over the previous month. The result contrasted the 0.1% increase recorded in December but beat market expectations of a 0.6% decline. According to Statistics Sweden (SCB), the largest increases were for the housing, water, electricity, and fuels and fuels component, while clothing and footwear prices saw the largest decrease.

Inflation in January was 0.8%, up from 0.1% in December. The figure marked the highest level since June 2012, and the sixth increase in annual consumer prices since May. This will take some pressure off the Central Bank, which has been struggling to bring inflation in line with its 2.0% target. To this end, the Bank has employed unconventional policy measures, including negative policy rates and a government bond-buying program, since the beginning of 2015. Annual average variation in consumer prices increased from a flat reading in December to 0.1% in January.

Meanwhile, core inflation—defined as the CPI with mortgage rates held constant—was 1.6% in January, which was up from the 0.9% increase tallied in December.

The Central Bank expects inflation to average 1.3% in 2016 and sees it picking up to 2.5% in 2017. FocusEconomics Consensus Forecast panelists expect inflation to average 0.9% in 2016, which is unchanged from last month’s forecast. For 2017, the panel sees average inflation at 1.8%.

Author:, Economist

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Sweden Inflation Chart

Sweden Inflation January 2016

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

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