Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Sweden Inflation Unexpectedly Holds as Industrial Output Slumps

Oct. 10 (Bloomberg) -- Sweden’s inflation was little changed in September and industrial production slumped, cooling bets on interest rate increases in the largest Nordic economy.

Consumer prices rose an annual 0.1 percent, the same as in the prior month, Statistics Sweden said today. They were seen rising 0.2 percent, according to a Bloomberg survey of 14 economists. Prices rose 0.4 percent in the month. Adjusted for mortgage costs, gains slowed to an annual 0.9 percent from 1.2 percent. They rose 0.4 percent in the month.

The Riksbank kept its repo rate at 1 percent last month, in part to avoid fueling household debt, and predicted it would raise rates late next year. At the same time, inflation has trailed the bank’s 2 percent target for 21 months.

Underlying inflation will stay under target until 2016 as raw material, energy and food prices keep a lid on price gains, said Olle Holmgren, an analyst at SEB AB in Stockholm, before the report. The Riksbank won’t be able to raise interest rates until late next year, he predicted.

A separate report showed industrial production unexpectedly fell 2.3 percent in August.

The krona slid 0.5 percent to 8.7853 per euro as of 9:45 a.m. in Stockholm.

To contact the reporter on this story: Johan Carlstrom in Stockholm at jcarlstrom@bloomberg.net

To contact the editor responsible for this story: Jonas Bergman at jbergman@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.