Swedish retail sales rise above expectations in November, producer prices accelerate

Swedish retail sales grew above expectations in the month of November. So far, consumers appear resilient to developments in the housing market. Retail sales rose 0.8 percent sequentially and 3.8 percent year-on-year in the month. The solid reading will ease worries that developments in the housing market would cause a downturn in consumption. The high consumer sentiment and optimistic retailers are also on the positive side. But, the swaying housing continues to be a risk for domestic demand longer out.

Meanwhile, figures indicated that producer prices rose 1.5 percent sequentially in November, stimulated by SEK depreciation and higher energy prices. Import prices and domestic supply prices for consumption goods also rose sequentially, while the year-on-year figure dropped. The upturn on the month is roughly as anticipated, noted Nordea Bank. Inflation forecasts have been raised lately because of the subdued SEK. On a year-on-year basis, producer prices rose 2.7 percent.

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