Despite oil price increase, limited inflationary effect

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Despite oil price increase, limited inflationary effect
Photo: Janerik Henriksson/TT

On Thursday morning, Statistics Sweden will release inflation figures for February. The market expects inflation to be 1.8 percent, according to the CPIF measure, down from January's figure of 2.0 percent.

The reason is lower energy prices, a stronger krona and slightly lower raw material prices for food, according to Johan Löf, forecast manager at Handelsbanken.

In February there will be a fairly moderate inflation figure, even below the Swedish Central Bank's 2.0 percent target. The big question is, of course, what happens in the future given the developments in the Middle East.

Löf told TT.

Even if the price of oil were to surge to $100 per barrel, Handelsbanken's assessment is that it will have a limited effect, 0.4 percentage points, on inflation up until the summer.

On Wednesday evening, a barrel of North Sea oil was at $81.20.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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