Sweden: Inflation stable in September
October 10, 2013
In September, consumer prices rose 0.4% over the previous month, which was above the 0.1% increase recorded in August. According to Statistics Sweden (SCB), the result came on the back of higher prices for clothing and footwear as well as for electricity.
Headline inflation was stable at August's 0.1% and undershot market expectations, which had inflation inching up to 0.2%. As a result, inflation is still well below the Central Bank's (Riksbank) target of 2.0%. In addition, annual average inflation was also unchanged at August's zero percent.
The core inflation index - defined as the CPI with mortgage rates held constant - increased 0.4% over the previous month in August, while annual core inflation fell to 0.9%.
According to its September Monetary Policy Report, the Central Bank expects inflation to average 0.1% in 2013 and 1.3% in 2014. FocusEconomics Consensus Forecast panelists expect inflation to average 0.3% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, the panel sees average inflation at 1.5%, which is unchanged from last month's estimate.
Author: Dirina Mançellari, Senior Economist