Sweden: Inflation moderates in March
April 10, 2012
In March, consumer prices rose 0.3% over the previous month, which was below the 0.7% increase tallied in February. According to Statistics Sweden (SCB), the reading was mainly driven by price increases for clothing and footwear as well as for petrol. Despite the monthly price increase, annual headline inflation fell from 1.9% in February to 1.5% in March, which was in line with market expectations. At the current level, annual inflation is below the Central Bank's (Riksbank) inflation target of 2.0%. Annual average inflation also moderated from 2.9% in February to 2.7% in March. Meanwhile, the core inflation index, defined as the CPI with mortgage rates held constant, increased 0.4% over the previous month, driving annual core inflation to 1.1% in March, which was unchanged from February's result. Riksbank expects inflation to moderate going forward and to average 1.4% in 2012 and 1.9% in 2013.