Sweden: Inflation picks up in March
April 13, 2018
Consumer prices in Sweden rose 0.3% on a month-on-month basis in March according to data released by Statistics Sweden (SCB). This was down from February’s 0.7% increase and slightly below market expectations. The SCB’s data showed that March’s price rise was driven by higher prices for food and non-alcoholic beverages, and clothing and footwear.
Inflation increased from 1.6% in February to 1.9% in March. As a result, inflation was still slightly below the Riksbank’s 2.0% target, but firmly within the 1.0%-3.0% tolerance band. Meanwhile, annual average inflation came in at 1.8% for the sixth consecutive month. The CPI with interest rates held constant (CPIF) was 2.0% in March, up from 1.7% in February.
Sweden Inflation Forecast
The Central Bank expects inflation to average 1.7% in 2018 and 2.6% in 2019. FocusEconomics Consensus Forecast panelists expect inflation to average 1.8% in 2018 and 2.1% in 2019, propped up by highly accommodative monetary policy and a robust economy. However, the expected appreciation of the krona over the next few years will keep a lid on price increases.
Author: Oliver Reynolds, Economist