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Sweden Has Officially Entered Deflation

  • Written by Syndicated Publisher No Comments Comments
    March 17, 2013

    Reader Kenneth from Stockholm, Sweden informs me that Sweden is Officially in Deflation.

     Current Inflation Rate

    In February 2013, CPI inflation (measured as the annual change in the consumer price index) stood at -0.2 per cent (-0.0 per cent in January 2013).

    The annual percentage change in the CPIF (the CPI with a fixed interest rate, which is not directly affected by changes in mortgage rates) was 0.9 per cent in February 2013 (1.0 per cent in December 2012).

    This is good news for consumers in Sweden, but the clowns at the Riksbank (and the clowns at every other central bank including the Fed) see things differently.

    The Riksbank’s target is to maintain inflation at a rate of 2 per cent when measured by CPI.

    In a separate article I will go over, once again, why inflation targeting is a bad idea.
    Read more at http://globaleconomicanalysis.blogspot.com/2013/03/sweden-officially-in-deflation-as.html#FpwRSUD6tC8eKG5e.99

    Images: Flickr (licence attribution)

    About The Author

    Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.  Visit Sitka Pacific’s Account Management Page to learn more about wealth management and capital preservation strategies of Sitka Pacific.

    You are currently viewing my global economics blog which typically has commentary every day of the week. I am also a contributing “professor” on Minyanville, a community site focused on economic and financial education.  Every Thursday I do a podcast on HoweStreet and on an ad hoc basis contribute to many other sites.

    When not writing about stocks or the economy I spend a great deal of time on photography and in the garden. I have over 80 magazine and book cover credits. Some of my Wisconsin and gardening images can be seen at MichaelShedlock.com.

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