Sweden: Inflation steady in October
November 12, 2015
In October, consumer prices rose 0.1% over the previous month. The result was down from the 0.4% increase recorded in September and was in line with market expectations. According to Statistics Sweden (SCB), higher prices for package holidays, vegetables and clothing and footwear drove October’s result.
Inflation in October was unchanged at September’s 0.1% increase. October’s tally marks the second annual increase in prices since May and will ease pressure on the Central Bank, which has been combatting falling prices with unconventional policy measures, including negative policy rates and a government bond-buying program. Annual average variation in consumer prices held at minus 0.1% in September for the eight consecutive month.
Meanwhile, annual core inflation—defined as the CPI with mortgage rates held constant—was 1.1% in October, which was slightly up from the 1.0% increase tallied in September.
Author: Robert Hill, Economist