Sweden Inflation June 2017

Sweden

Sweden: Inflation steadies in June

July 13, 2017

In June, consumer prices rose 0.1%, which matched the result of the previous month. Statistics Sweden (SCB) reported that the result came on the back of higher prices for package holidays, international flights and banking services. Meanwhile, clothing, vehicle fuels and lubricants as well as electricity and fuels recorded lower prices.

Inflation in June was unchanged from May and came in at 1.7%, marginally above the 1.6% that was expected by analysts and the central bank. June’s print means that inflation did not return to the central bank’s target of 2.0%. However, the reading suggests that inflation is stabilizing near the central bank’s target. While this is a positive sign, some of our analysts think it is too early to expect changes to the central bank’s monetary policy.

Further, core inflation—defined as the CPI with mortgage rates held constant—was also unchanged from the previous month and came in at 1.9% in June.

In its July Monetary Policy Report, the Central Bank projects that inflation will average 1.6% in 2017 and sees it picking up to 2.0% in 2018. FocusEconomics Consensus Forecast panelists expect inflation to average 1.7% in 2017, which is up 0.1 percentage points from last month’s forecast. For 2018, the panel sees average inflation at 1.8%.


Author:, Economist

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Sweden Inflation Chart


Sweden Inflation June 2017

Note: Year-on-year and month-on-month variation of consumer price index in %.
Source: Statistics Sweden (SCB).


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