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Inflation up slightly but less than expected

Published torsdag 17 februari 2011 kl 11.37

Statistics Sweden reports that consumer prices here dropped between December and January, by 0.7 percent. The overall annual rate of inflation went up slightly during the same period, from 2.5 to 2.7 percent, but the underlying inflation during the period was less than expected.

Contributing to the rise were higher fuel and electricity prices, as well as interest rate hikes from the Bank of Sweden. The conventional wisdom is that interest rate increases are supposed to curb inflation.

The agency also reports that open unemployment here in January was 8.2 percent. That’s more than one percentage point less than at the same time last year.

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