Swedish Producer Prices Slide 3.1% as Jobless Rate Falls to 9.4%

Sweden’s latest data depict a mixed economic picture, with price pressures easing further while activity cools and the labour market shows tentative improvement. Headline consumer inflation accelerated in June, with the consumer price index rising 0.5% from May and 0.8% from a year earlier, well above the prior month’s 0.1% and 0.2% readings. Core inflation, measured by the CPIF, matched the headline monthly increase of 0.5%. Activity indicators released earlier this month pointed to a loss of momentum. May gross domestic product contracted 0.2% on the month, reversing April’s 0.4% expansion. Service-sector output advanced 1.2% year-on-year, down sharply from 3.4% a year earlier. Private-sector production grew 2.0% on the year but dipped 0.1% on the month, and household spending eked out a 0.6% annual gain versus 2.7% previously. More recent figures show disinflation spreading through the supply chain. Producer prices fell 0.6% in June from May, deepening the prior 0.5% drop, and were 3.1% lower than a year ago. Despite softer prices, the unemployment rate slipped to 9.4% in June from 9.7% in May; the seasonally adjusted measure declined to 8.3%, its lowest since February, suggesting the labour market remains resilient even as output slows.