Sweden: Inflation ticks up in June, exceeding Riksbank’s target and market expectations
Latest reading: Consumer prices with a fixed interest rate (CPIF) inflation inched up to 2.8% in June from May’s 2.3% reading, marking the highest print in four months. June’s reading exceeded the Riksbank’s 2.0% target for a sixth straight month, as well as market expectations. Looking at the details of the release, higher price pressures for food and a softer decline in transport costs outweighed a sharper fall in housing and utilities costs.
As a result, the trend pointed up, with annual average inflation rising to 2.0% in June (May: +1.9%). Additionally, core inflation—which excludes energy costs as well as the effect of interest-rate changes—ticked up to 3.3% in June from May’s 2.5%, marking an over year high. Meanwhile, consumer price inflation climbed to 0.7% (May: +0.2%).
Finally, consumer prices with a fixed interest rate rose 0.53% from the previous month in June, up from the 0.14% increase seen in May.