Monetary policy introduced by the Swedish Riksbank appears to have had a positive effect on the local headline inflation rate. The annualized consumer price index for the month of January jumped to 0.80% from a 0.10% in the previous month, beating market expectations of 0.50%. The report delivered by Statistics Sweden underlined that inflation was mostly held back by telecommunications and housing but offset by rises in transport, apparel, restaurant and hotels as well as goods and services. On a monthly basis, consumer prices contracted by -0.30% compared to the previous month’s 0.10% but managed to beat expectations of -0.60%. The Swedish Central Bank recently cut interest rates from -0.35% to -0.50% in order to help bolster inflation. The Banks’ decision reflected ongoing weakness in energy prices, global turbulence and further hints of stimulus from European Central Bank officials of to avoid deflation from infiltrating over the year.
Global Growth Outlook Cut By OECD
Daily Analysis - 19/02/2016