Sweden: CPIF inflation continues to climb in November
Latest reading: Consumer prices with a fixed interest rate (CPIF) inflation jumped to a six-month high of 1.8% in November from October’s 1.5%, nearing the Riksbank’s 2.0% target but surprising markets slightly on the downside. Looking at the details of the release, a faster increase in prices for food and non-alcoholic beverages outweighed a softer rise in housing costs.
That said, the trend pointed down, with annual average inflation coming in at 2.0% in November (October: 2.1%). Moreover, core inflation—which excludes energy costs as well as the effect of interest-rate changes—rose 2.4% in November, above October’s 2.1% increase. Meanwhile, consumer price inflation was stable at October’s 1.6% in November.
Finally, consumer prices with a fixed interest rate rose 0.53% from the previous month in November, above the 0.39% increase seen in October. November’s figure marked a year-to-date high.
Panelist insight: Danske Bank’s Michael Grahn commented:
“The taming of inflation has been slower than expected. […] There is also considerable uncertainty about how the CPIF will move in the light of the EU’s new electricity directive causing a sharp increase in electricity prices in Sweden since its introduction on 29 November. Partly for this reason, our previous call that inflation would continue to fall next year has become a little more uncertain.”