Swedish inflation holds steady – but food prices are on the rise
Sweden's inflation rate remained unchanged at 9.3 percent in July, fresh figures show.
The 9.34 percent figure measures year-on-year inflation according to the consumer price index measurement (CPI), and the July update from Statistics Sweden was largely in line with expectations.
Inflation according to the CPIF measurement, which removes rising interest rates on mortgages from the equation, also remained unchanged at 6.4 percent, marginally lower than expected.
Experts breathed a sigh of relief that the July inflation rate didn’t deviate much from expectations, noting that this made it less likely that the Swedish Central Bank – the Riksbank – would plan another interest rate hike on top of the one that’s already expected to come in September.
“But that’s assuming that inflation falls this autumn,” SEB economist Olle Holmgren told Swedish news agency TT.
COST OF LIVING:
Package holidays and food were the two factors behind increasing prices in July.
After a spring of falling food prices, they increased 1.4 percent month-on-month in July, climbing back up to the same levels as in March.
Although food prices generally fluctuate throughout the year depending on, for example, what fruits and vegetables are in season, this was higher than the average 1 percent rise Sweden normally sees in July, according to Statistics Sweden.
The price of yellow onions rose the most, costing 29.2 percent more than June (and 55.57 percent more than July last year), followed by pears, canned herring, cucumber and tomatoes.
Cucumber prices, while increasing 10.9 percent month-on-month, fell 18.7 percent compared to last July.
TOP TEN LIST:
Comments
See Also
The 9.34 percent figure measures year-on-year inflation according to the consumer price index measurement (CPI), and the July update from Statistics Sweden was largely in line with expectations.
Inflation according to the CPIF measurement, which removes rising interest rates on mortgages from the equation, also remained unchanged at 6.4 percent, marginally lower than expected.
Experts breathed a sigh of relief that the July inflation rate didn’t deviate much from expectations, noting that this made it less likely that the Swedish Central Bank – the Riksbank – would plan another interest rate hike on top of the one that’s already expected to come in September.
“But that’s assuming that inflation falls this autumn,” SEB economist Olle Holmgren told Swedish news agency TT.
COST OF LIVING:
Package holidays and food were the two factors behind increasing prices in July.
After a spring of falling food prices, they increased 1.4 percent month-on-month in July, climbing back up to the same levels as in March.
Although food prices generally fluctuate throughout the year depending on, for example, what fruits and vegetables are in season, this was higher than the average 1 percent rise Sweden normally sees in July, according to Statistics Sweden.
The price of yellow onions rose the most, costing 29.2 percent more than June (and 55.57 percent more than July last year), followed by pears, canned herring, cucumber and tomatoes.
Cucumber prices, while increasing 10.9 percent month-on-month, fell 18.7 percent compared to last July.
TOP TEN LIST:
Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.
Please log in here to leave a comment.