Sweden: Inflation stabilizes in August
September 13, 2012
In August, consumer prices rose 0.1% over the previous month, which contrasted the 0.4% decrease recorded in July. According to Statistics Sweden (SCB), the reading was mainly influenced by higher prices for clothing and footwear. Owing to the subdued monthly price increase, annual headline inflation remained stable at July's 0.7%, which is well below the Central Bank's (Riksbank) inflation target of 2.0%. In addition, annual average inflation edged down from 2.0% in July to 1.8% in August. Meanwhile, the core inflation index - defined as the CPI with mortgage rates held constant - added 0.1% over the previous month, driving annual core inflation up to 0.9% in August (July: +0.8%). Riksbank expects inflation to moderate going forward and to average 1.2% in 2012 and 1.3% in 2013.