Sweden: Inflation stable in April
May 12, 2016
In April, consumer prices were unchanged over the previous month. The result followed a 0.5% increase recorded in March and was slightly below market expectations of a 0.1% rise. According to Statistics Sweden (SCB), increased prices for fuels and books were offset by lower prices for international flights and packaged holidays.
Inflation in April was unchanged from the 0.8% recorded in March. Inflation has been consistently above zero for the past eight months. The Central Bank has utilized unconventional policy measures, including negative policy rates and a government bond-buying program since the beginning of 2015, in order to bring inflation closer to its 2.0% target. Although inflation is still well below target, it appears to be following an upward trend. Annual average growth in consumer prices was 0.2% in April, up from 0.1% in March.
Meanwhile, core inflation—defined as the CPI with mortgage rates held constant—was 1.4% in April, which was down from the 1.5% recorded in March.
Author: Robert Hill, Economist