“It looks like clothes sales, which are normally in July, have extended a little and affect even August figures. This effect will be reversed, at least in part, in September,” said Per Selldén at Swedbank regarding the development of consumer prices.
Analysts had forecast an average price rise of 0.1 percent, and thus the August figure was somewhat lower than expected.
“Initially it is lower than expected. But if you look at the details then there shouldn’t be any market effects. It should not have any effect on monetary policy,” Selldén said.
Prices on foreign air travel fell by 20.9 percent between July and August, following a strong climb in the previous month, and contributed a 0.1 percentage point decline in consumer prices.
Price reductions on charter holidays of 7.1 percent pulled the figure down a further 0.1 percentage points.
Higher interest rate costs for homeowners meanwhile pushed consumer prices up by 0.1 points.
Sweden’s Riksbank raised the repo rate by 0.25 percentage points to 0.75 percent on September, the second consecutive 0.25 point as the economy returns to normal conditions following the fall out of the finance crisis.
The underlying rate of inflation as measured by CPIX, (CPI excluding the effects of changes in interest rates on mortgage loans, and direct changes in taxes and subsidies), amounted to 1.1 percent in August.