Sweden: Inflation stabilizes in October
November 13, 2012
In October, consumer prices fell 0.1% over the previous month, which contrasted the 0.4% rise recorded in September. According to Statistics Sweden (SCB), the reading was mainly influenced by lower interest costs for owner occupied housing as well as lower fuel prices. Building on the monthly decline, annual headline inflation stabilized at 0.4% in October, which was a notch below market expectations of 0.5%. As a result, inflation remains well below the Central Bank's (Riksbank) inflation target of 2.0%. In addition, annual average inflation edged down from 1.5% in September to 1.3% in October. Meanwhile, the core inflation index - defined as the CPI with mortgage rates held constant - added 0.1% over the previous month, driving annual core inflation up to 1.1% in October (September: +0.9%).