Sweden on the Verge of Deflation

The Swedish economy is on the verge of deflation. In March, the rate of price increase dropped down to 0.2 percent – the lowest figure in years.

According to calculations by Swedish bank SEB, the country’s economy will see decreasing prices by May. The weak Krona and the depressed retail industry are the main explanations to the expected deflation.

SEB expects Sweden’s central bank, Riksbanken, to lower the key interest rate once more within the next weeks. (ah)

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