Sweden Inflation October 2016


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%.

The Central Bank projects that inflation will average 1.5% in 2016 and sees it picking up to 1.8% in 2017. FocusEconomics Consensus Forecast panelists expect inflation to average 1.0% in 2016, which is unchanged from last month’s forecast. For 2017, the panel sees average inflation at 1.5%, which is down 0.1 percentage points from last month’s forecast.

Author:, Economist

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Sweden Inflation Chart

Sweden Inflation October 2016

Note: Year-on-year and month-on-month variation of consumer price index in %.
Source: Statistics Sweden (SCB).

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