Sweden: Inflation remains stable in February
March 14, 2018
Consumer prices in Sweden rose 0.7% on a month-on-month basis according to data released by Statistics Sweden (SCB). This contrasted January’s 0.8% drop and was in line with market expectations. The SCB’s data showed that February’s rebound was driven by higher prices for clothing and footwear, energy and transport.
Inflation remained stable from January at 1.6%. As a result, inflation remained 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 fifth consecutive month. The CPI with interest rates held constant (CPIF) was 1.7% in February, matching January’s figure.
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 1.9% 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: Javier Colato, Economist