Sweden: Inflation edges down in September
October 11, 2016
In September, consumer prices inched up 0.2% from the previous month, contrasting August’s 0.1% drop and falling short of market expectations of a 0.5% increase. Higher prices for clothing drove the monthly increase, which was nevertheless softened by a drop in prices for vegetables and telephone services, according to Statistics Sweden (SCB).
Inflation edged down from August’s 1.1% to 0.9% in September, which marked the lowest value in four months and remained below the Central Bank’s 2.0% target. The Central Bank is expected to go further with its unconventional policy measures, including negative policy rates and a government bond-buying program, during the remainder of 2016 in order to push up inflation. Annual average inflation inched up to 0.7% in September from 0.6% in August.
Meanwhile, core inflation—defined as the CPI with mortgage rates held constant—was 1.2% in September, down from August’s 1.4%.
Author: Andrea Vetrugno, Economist