Sweden Inflation May 2017

Sweden

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%.

In its April Monetary Policy Report, the Central Bank projects that inflation will average 1.6% in 2017 and sees it picking up to 2.1% in 2018. FocusEconomics Consensus Forecast panelists expect inflation to average 1.6% in 2017, which is unchanged from last month’s forecast. For 2018, the panel sees average inflation at 1.8%.


Author:, Economist

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Sweden Inflation May 2017

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


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