2023.10.1308:39:00UTC+00Sweden Inflation Eases To 6.5%, Lowest 17 Months

Sweden's consumer price inflation moderated in September to the lowest level in nearly one-and-a-half years, primarily due to a plunge in electricity prices, data from Statistics Sweden showed on Friday.

The consumer price index rose 6.5 percent year-over-year in September, slower than August's increase of 7.5 percent. Economists had forecast inflation to ease to 6.3 percent.

Further, this was the weakest inflation rate since April last year, when prices had risen 6.4 percent.

Data showed that the consumer price index with a fixed interest rate also increased at a slower pace of 4.0 percent annually in September versus 4.7 percent growth in the prior month. The expected rate was 3.8 percent.

Electricity prices were 45.3 percent lower in September compared to September last year, which contributed to a decrease in the inflation rate, the agency said.

The annual price growth for food and non-alcoholic beverages eased to 7.7 percent in September from 9.0 percent in the previous month.

Clothing prices were 8.4 percent more expensive compared to last year, while transport costs increased at a slower rate of 0.7 percent.

Month-on-month, consumer prices rose 0.5 percent after rising 0.1 percent in August. Prices were expected to increase by 0.3 percent.

The CPIF rebounded 0.4 percent versus a 0.1 percent decrease a month ago.