Sweden: Inflation steady in August
September 11, 2013
In August, consumer prices increase 0.1% over the previous month, which contrasted the 0.1% decline recorded in July. According to Statistics Sweden (SCB), the reading was influenced by an increase in prices for clothing and footwear.
Headline inflation remained at July's 0.1% and matched market expectations. At the current level, inflation is well below the Central Bank's (Riksbank) target of 2.0%. Meanwhile, annual average inflation remains at July's zero percent.
The core inflation index - defined as the CPI with mortgage rates held constant - increased 0.1% over the previous month in August, while annual core inflation remained unchanged at 1.2%.
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%.
Author: Dirina Mançellari, Senior Economist