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Sweden Inflation December 2018

Sweden: CPIF inflation ticks up in December, CPI inflation unchanged

Consumer prices in Sweden rose 0.4% month-on-month in December, contrasting November’s 0.1% decline, according to data released by Statistics Sweden (SCB). December’s price rise was driven by higher prices for food and non-alcoholic beverages, transport, and recreation and culture.

The CPI with interest rates held constant (CPIF) inched up from 2.1% in November to 2.2% in December, within the Central Bank’s 1.0%–3.0% tolerance band and slightly above market expectations, while core CPIF inflation—which excludes volatile energy costs—rose from 1.4% to 1.5%. CPI inflation was stable at 2.0%. December’s figures come after lower-than-expected inflation readings in October and November, but do not notably change the panorama or the outlook for interest rates, which are seen rising slightly later this year.

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