In monthly terms the consumer price index increased by 0.4%, while average annual inflation accelerated to 0.9%. Prices of goods increased by 1.5% in December – that was the highest growth rate since the beginning of 2013. After a temporary setback in November annual growth in the prices of services picked up again, Swedbank reported.
Outlook: faster price growth next year
Rising prices of commodities and increasing labour costs will push annual inflation higher this year. We expect that average annual inflation will reach 3.0% this year and will decelerate to 2.5% in 2018.