Sweden: Inflation stable in December
January 14, 2014
In December 2013, consumer prices rose 0.3% over the previous month, which contrasted the 0.1% fall recorded in November. According to Statistics Sweden (SCB), the result came on the back of higher prices for transport as well as for food goods.
Consumer prices rose 0.1% over the same month last year, which mirrored the rise recorded in November. The figure contrasted the 0.1% fall the markets had expected. Inflation is still well below the Central Bank's target of 2.0%. In addition, annual average inflation in December remained at November's minus 0.1%.
Meanwhile, the core inflation index - defined as the CPI with mortgage rates held constant - inched up from 0.7% in November to 0.8% in December.
The Central Bank expects inflation to average 0.6% in 2014 and 2.5% in 2015. FocusEconomics Consensus Forecast panelists expect inflation to average 1.0% in 2014, which is down 0.2 percentage points from last month's forecast. For 2015, the panel sees average inflation at 2.0%.
Author: Dirina Mançellari, Senior Economist