Sweden: Inflation edges down in July
August 14, 2012
In July, consumer prices declined 0.4% over the previous month, which followed the 0.2% decrease recorded in June. According to Statistics Sweden (SCB), the reading was mainly influenced by lower prices for clothing and electricity. As a result of the monthly price decrease, annual headline inflation fell from 1.0% in June to 0.7% in July, which is well below the Central Bank's (Riksbank) inflation target of 2.0%. In addition, annual average inflation edged down from 2.2% in June to 2.0% in July. Meanwhile, the core inflation index, defined as the CPI with mortgage rates held constant, fell 0.4% over the previous month, driving annual core inflation down to 0.8% in July. Riksbank expects inflation to moderate going forward and to average 1.1% in 2012 and 1.7% in 2013.