Swedish Inflation continues to fall and reaching central bank's expectation

Tuesday, 14 August 2012
The Swedish Consumer Price Index (CPI) decreased by 0.4 percent from June to July 2012 (unchanged from June to July 2011).

According to Statistic Sweden, the inflation rate was 0.7 percent in July 2012, and 1.0 percent in June.

Analysts had expected that consumer prices would have fallen 0.3 percent on a monthly basis and increased by 0.8 percent compared to March 2011, media reports suggest.

Lower prices for clothing (-6.3 percent) contributed to the downwards drive by 0.3 percentage in June to July. Lower prices for electricity (-3.7 percent) contributed downwards by 0.2 percentage points. Lower prices for vegetables (-6.9) contributed downwards by 0.1 percentage point.

On the flip side, higher prices for package holidays (7.2 percent) partially counteracted the decrease in the CPI from June to July and contributed upwards by 0.1 percentage point. Higher prices for petrol (1.4 percent) and transport services (1.8 percent) contributed upwards by a further 0.1 percentage point. 

The Swedish central bank, the Riksbank's forecast from the Monetary Policy Report, published on July 4, was that CPI inflation would be 0.7 percent in July. The inflation rate therefore reached the bank's expectation.
By Scancomark.se Team../ Source: Statistic Sweden