Sweden: Inflation hits five-year high in February
March 14, 2017
Consumer prices rose 0.7% in February, contrasting the 0.7% drop observed in January. According to Statistics Sweden (SCB), the rise was mainly driven by higher prices for clothing as well as for package holidays and vegetables.
Inflation came in at 1.8% in February (January: +1.4% month-on-month), which marked the highest value in five years and a further step towards the Central Bank’s 2.0% target. February’s spike in inflation, coupled with a stronger economy, could allow the Riksbank to raise interest rates in the near future. Meanwhile, annual average inflation edged up from 1.0% in January to 1.2% in February.
Lastly, core inflation—defined as the CPI with mortgage rates held constant—was 1.2% in February, up from January’s 1.0%.