Decline in energy prices to effect Sweden July infation

Also energy prices have moved lower since the Riksbank's monetary policy meeting in July. World market oil prices have declined markedly, while the drop in fuel prices in Sweden has been considerably less pronounced. 

"In addition, the prices were lowered during the latter part of the month and will not affect the CPI reading noticeably in July. However, if prices stay at current levels, the impact will be around -0.1% point in August", forecasts Nordea Bank.

The decline in electricity prices will affect the inflation data for July. Spot prices on the Nordic electricity exchange Nordpool were record low at SEK 0.085 per kWh on average in July. This might reduce the CPI reading by some 0.1% point. 

"While fuel prices may remain close to current levels, the electricity prices will rise again during the autumn and winter when the weather gets colder and the manufacturing sector (hopefully) shifts into a higher gear after the holiday period", added Nordea Bank.