Swedish inflation drops sharply in November

Swedish inflation slowed in November to 2.5 percent from 4.0 percent in October, thanks to declining petrol and mortgage costs, Statistics Sweden (SCB) said on Tuesday.

On a month-on-month basis, November consumer prices dropped 0.8 percent, SCB said.

The fall in the rate of inflation, which is a measure of the average change of consumer prices over the past 12 months, was the largest for 15 years, according to SCB.

The decline was attributed primarily to a 9.1 percent fall in petrol prices and lower borrowing and mortgage interest costs.

“The inflation figures were in line with the Riksbank’s forecast and a further confirmation that the rate of inflation is on its way down,” said Henrik Mitelman at SEB Merchant Banking.

“This is a large and broad fall and paves the way for further base rate cuts next year.”

Underlying inflation was 1.6 percent in November on an annual basis, down by 0.5 percent from October.