Sweden: Inflation reaches over four-year high in October but remains below target
November 15, 2016
In October, consumer prices increased 0.3% from the previous month, up from September’s 0.2% increase. October’s reading matched market expectations. Higher prices for food, electricity and fuels drove the monthly increase, according to Statistics Sweden (SCB).
Inflation edged up from September’s 0.9% to 1.2% in October, which marked the highest value in more than four years but 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 stayed stable at September’s 0.7% in October.
Meanwhile, core inflation—defined as the CPI with mortgage rates held constant—was 1.4% in October, up from September’s 1.2%.
Author: Andrea Vetrugno, Economist