Sweden: Inflation Falls in December, EURSEK Remains Supported
- Sweden’s Inflation Rate falls to -0.3% in December
- Household consumption increases 0.6% in November; business production increases 2.2%
- EURSEK Remains Supported above 9.4000
While, momentum garnered from the November rise in Swedish household consumption and business production was not robust enough to raise headline inflation, an increase in the monthly CPI was noted.
Seasonally adjusted household consumption increased by 0.6% on a monthly basis between October and November. Year-over-year, when altered for seasonality and working day adjustments, consumption increased by 2.5% in November and 2.1% in the three months September-November. The largest contribution stems from the post and telecommunications industry which increased by 9.3%.
In the same month business production in Sweden increased by 2.2%. When compared to October, service production increased by 1.0% while construction rose by 2.4%. When analyzed over a three month span (September-November), an increase in production was noted, but to a lesser extent as the heavily weighted industrial production weakened by 0.8%.
With production and household consumption on the rise, Sweden’s inflation rate fell to -0.3% in December from -0.2% in November. However, at 314.05, CPI increased 0.2% on a monthly basis from November to December. The most impactful developments came from international flights (+57.3%) and pricing among packaged holidays (6.7%). Partially offsetting the increase—a decline in the price of fuel (-7.0%) and interest rate costs (-1.7%). Also increasing: the inflation rate with fixed interest (+0.5%) and the harmonized index of consumer prices (+0.3%).
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