Sweden: Inflation stabilizes in June
July 12, 2012
In June, consumer prices declined 0.2% over the previous month, which followed on a 0.1% decrease in May but was in line with market expectations. According to Statistics Sweden (SCB), the reading was mainly influenced by lower prices for clothing and fuels. Despite the monthly price decrease, annual headline inflation stabilized at May's 1.0%, which is below the Central Bank's (Riksbank) inflation target of 2.0%. Annual average inflation, however, edged down from 2.4% in May to 2.2% in June. Meanwhile, the core inflation index, defined as the CPI with mortgage rates held constant, fell 0.3% over the previous month, driving annual core inflation to 0.9% in June. Riksbank expects inflation to moderate going forward and to average 1.1% in 2012 and 1.7% in 2013.