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.
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