Sweden: Inflation increases in July
August 13, 2013
In July, consumer prices fell 0.1% over the previous month, which followed the 0.2% decline tallied in June. According to Statistics Sweden (SCB), the reading was mainly influenced by price decreases for clothing and footwear.
Inflation increased 0.1% in July (June: -0.1%), which was above market expectations of a flat reading. At the current level, inflation is well below the Central Bank's (Riksbank) target of 2.0%. In addition, annual average inflation inched down from 0.1% in June to zero percent in July.
Meanwhile, the core inflation index - defined as the CPI with mortgage rates held constant - fell 0.1% over the previous month in July, while annual core inflation edged up to 1.2%.
According to its July Monetary Policy Report, the Central Bank expects inflation to average 0.1% in 2013 and 1.3% in 2014. FocusEconomics Consensus Forecast panellists expect inflation to average 0.3% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, the panel sees average inflation at 1.5%.
Author: Dirina Mançellari, Senior Economist