Editions:  Austria · Denmark · France · Germany · Italy · Norway · Spain · Sweden · Switzerland
Advertisement

Consumer prices keep dropping in Sweden

Share this article

11:52 CEST+02:00
Sweden's inflation rate continued to fall in July as consumer prices dropped for the fourth straight month, according to new figures from Statistics Sweden.

Swedish prices fell by 0.9 percent in July on a 12-month basis, after dropping by 0.6 percent in June.

July represents the fourth month running in which prices have fallen after falls of 0.4 percent in May and 0.1 percent in April.

Statistics Sweden said the fall in the price of petrol, lower interest rates for housing and cheaper clothes were the key drivers behind the month's deflation.

It also said that from June to July, consumer prices fell by 0.5 percent.

Sweden experienced several months of strong inflation last year before tailing off rapidly.

In September, inflation was as high as 4.4 percent on a 12-month comparison.

Sweden's central bank has set itself an inflation target of 2.0 percent year-on-year.

Deflation can hamper economic growth because it reduces businesses profits and discourages investment.

It also leads consumers to put off buying goods in the hope that prices will continue to fall.

Get notified about breaking news on The Local

Share this article

Become a Member or sign-in to leave a comment.
Advertisement

From our sponsors

Zagreb: Spend this summer in Croatia's vibrant capital city

Lush green parks throughout the city centre, imposing heritage buildings, real Central European cafe society and Mediterranean style hospitality. Welcome to Zagreb, Croatia's stunning capital!

Advertisement
Advertisement
Advertisement
Advertisement
Advertisement

Popular articles

Advertisement
Advertisement