The annual inflation rate in Sweden declined to 1.4 percent in August 2019 from 1.7 percent in July and below market expectations of 1.7 percent. It was the lowest inflation rate since March 2017, as prices eased for food & non-alcoholic beverages (3.3% vs 3.8% in July); housing & utilities (2.2% vs 2.4%); restaurants & hotels (2.3% vs 3.2%) and furniture & household equipment (0.3% vs 1.5%). Also, cost went down further for clothing & footwear (-1.4% vs -0.5%) and communication (-8.3% vs -8%). Meanwhile, inflation was steady for transport (at 2.5%) and alcoholic beverages & tobacco (at 1.9%). The CPIF inflation, measured with a fixed interest rate, decreased to 1.3%, its lowest since September 2016, from 1.5% in the prior month. On a monthly basis, consumer prices declined 0.4 percent, after a 0.4 percent gain in July. Inflation Rate in Sweden averaged 3.48 percent from 1980 until 2019, reaching an all time high of 15.50 percent in October of 1980 and a record low of -1.60 percent in September of 2009.
Inflation Rate in Sweden is expected to be 1.60 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Sweden to stand at 2.40 in 12 months time. In the long-term, the Sweden Inflation Rate is projected to trend around 3.00 percent in 2020, according to our econometric models.