Sweden Inflation May 2018

Sweden

Sweden: Inflation rises in May

June 14, 2018

Consumer prices in Sweden rose 0.2% on a month-on-month basis in May according to data released by Statistics Sweden (SCB), down from April’s 0.4% increase. The SCB’s data showed that May’s price rise was driven by higher prices for food and non-alcoholic beverages, transport and health.

The CPI with interest rates held constant (CPIF) rose from 1.9% in April to 2.1% in May, a smidgeon above the Riksbank’s 2.0% target but firmly within the 1.0%-3.0% tolerance band. Inflation increased from 1.7% in April to 1.9% in May, while annual average inflation in May remained at 1.8%.

The Central Bank expects inflation to average 1.8% in 2018 and 2.6% in 2019. FocusEconomics Consensus Forecast panelists expect inflation to average 1.8% in 2018 and 2.0% in 2019, propped up by a robust economy, solid wage growth and highly accommodative monetary policy—at its most recent meeting, the Riksbank signaled it won’t begin to raise rates until near the end of 2018. In addition, the substantial weakening of the krona since the beginning of the year, coupled with higher oil prices, will add further upward pressure to inflation.


Author:, Economist

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Sweden Inflation May 2018 0

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


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