Interest Rates Hold Down Housing Prices
In its latest report, Statistics Sweden says consumer prices here went down by just under a half percentage point between December and January, while the rate of inflation rose slightly.
But the price drop is largely cosmetic, as the major reason is mostly explained by the institute’s updating the balance of what is weighed in the index.
Over the past year the cost of food went up by 5.5 percent in Sweden. Housing prices rose by only 2.2 percent, kept in check by the drop in interest rates. In January unemployment here was 7.3 percent, up by just under one point from the same month last year.