Sweden: Inflation dips in May
June 13, 2017
Consumer prices in Sweden rose 0.1% in May, a smaller increase than April’s 0.6%. According to Statistics Sweden (SCB), higher prices on accommodation services and package holidays drove the result. However lower prices on international flights, vehicle fuels and lubricants, and furnishing and household equipment partially offset the rise.
Inflation came in at 1.7% in May, in line with market expectations. The reading was lower than April’s 1.9% and moved further away fall from Riksbank’s 2.0% target. This indicates that the central bank will continue to pursue expansionary monetary policy. Meanwhile, annual average inflation edged up to 1.4% in May from 1.3% in April.
Lastly, core inflation—defined as the CPI with mortgage rates held constant—was 1.9%, up from April’s 2.0%.
Author: Nihad Ahmed, Economist