Inflation drops to 1.2 percent according to the CPIF measure.
In July, the figure was 1.7 percent.
– The inflation rate fell in August, which can largely be explained by lower energy prices, says Caroline Neander, price statistician at Statistics Sweden.
New figures from Statistics Sweden show that inflation is falling, from 1.7 to 1.2 percent.
– The inflation rate fell in August, which can largely be explained by lower energy prices, says Caroline Neander, price statistician at Statistics Sweden in a statement.
The expected figure was 1.4 or 1.3 percent, so inflation fell more than analysts and economists thought, and the Riksbank’s inflation target is 2.0 percent.
– This is positive news. That is what the Riksbank is waiting for and thinking about how low inflation should be before they lower the interest rate properly. That’s a good figure, says everyday economist Magnus Hjelmér at Ica bank.
It is behind
According to Caroline Neander, lower energy prices are behind most of this. But food prices also fell in August. The same with transport prices, where the prices of international flights, car rental and fuel fell.
“The price reductions were counteracted, among other things, by higher clothing prices, which is seasonally normal,” writes SCB.
Carrots, leeks and cauliflower were some of the goods that became cheaper – but fruit increased during the month of August.
Don’t believe in a big reduction
Magnus Hjelmér does not believe in a double rate cut from the Riksbank later in September as there are risks.
– I think that the Riksbank is a little cautious and will move forward slowly. Perhaps you would have liked them to use the hard gloves, they have talked about the double reductions. I think they will lower by 25 points to see the effect so that inflation does not increase again, says Magnus Hjelmér.
CPIF inflation, which the Riksbank uses in its inflation target, is an underlying measure of inflation where the effects of mortgage interest have been excluded.
Today’s inflation figure is a decisive basis for the Riksbank’s decision before the next interest rate announcement, which will come on 25 September. The Riksbank has previously signaled that three further reductions in the key interest rate may come this year.