Sweden: Inflation continues to slow in January
February 16, 2012
In January, consumer prices fell 0.9% over the previous month, which contrasted the 0.2% increase recorded in December and exceeded market expectations of a more moderate 0.5% price drop. According to Statistics Sweden (SCB), the reading was mainly driven by seasonal price decrease in the clothing and footwear category as well as by a reweighting of the consumption basket. Annual headline inflation fell from 2.3% in December to 1.9% in January, slightly below the Central Bank's (Riksbank) inflation target of 2.0%. Annual average inflation inched down from 3.0% in December to 2.9% in January. Riksbank estimates inflation to average 1.4% in 2012 and 1.9% in 2013.