Sweden: Inflation rises in November
December 12, 2013
In November, consumer prices fell 0.1% over the previous month, which was up from the 0.2% fall observed in October. According to Statistics Sweden (SCB), the result came on the back of lower prices for food as well as for fuels.
Consumer prices rose 0.1% over the same month last year, which contrasted the 0.1% fall recorded in October. The figure undershot the 0.2% increase that markets had expected. Inflation remains well below the Central Bank's target of 2.0%. In addition, annual average inflation remained at the previous month's minus 0.1%.
Meanwhile, the core inflation index - defined as the CPI with mortgage rates held constant - was flat in November, while annual core inflation rose 0.7% (October: 0.6%).
According to its September Monetary Policy Report, the Central Bank expects inflation to average 0.1% in 2013 and 1.3% in 2014. FocusEconomics Consensus Forecast panelists expect inflation to average 0.3% in 2013, which is down 0.1 percentage points from last month's forecast. For 2014, the panel sees average inflation at 1.5%, which is unchanged over last month's estimate.
Author: Dirina Mançellari, Senior Economist