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.
Mike “Mish” Shedlock