Sweden Inflation Confirmed At 6-month High

(RTTNews) - Sweden's consumer price inflation increased as initially estimated in August to the highest level in six months, the latest data from Statistics Sweden showed on Thursday.

The consumer price index, or CPI, rose 1.1 percent year-over-year in August, following a 0.8 percent increase in July. That was in line with the flash data published on September 4.

The spike in inflation was largely driven by a 25.0 percent surge in electricity costs and a 4.7 percent rise in costs for food and non-alcoholic beverages.

On the other hand, the inflation rate was partially offset by lower interest expenses for owner-occupied housing and tenant-owned apartments, which fell 24.0 percent and 27.3 percent, respectively.

Data showed that the consumer price index with a fixed interest rate, or CPIF, also increased at a faster pace of 3.2 percent annually in August versus 3.0 percent in July. Moreover, the inflation has continued to remain above the Riksbank's target of 2.0 percent.

Month-on-month, consumer prices dropped 0.4 percent, as estimated.