Swedish producer prices fall sequentially in October, exports remain unchanged

The SEK’s stabilization is feeding through to import prices, lowering inflationary pressures. Exports continue to be subdued and credit growth is unchanged. Producer prices fell 0.3 percent sequentially in October, reflecting a stronger Swedish krona and declining energy prices. As for import prices, the year-on-year figures for consumer goods fell after the rise previously this year,  and much imply that it would continue to fall, noted Nordea Bank in a research report. Core consumer prices inflation would have a similar profile, with a rise near term but a dip next year, according to Nordea Bank.

Meanwhile, exports of goods have been unchanged for nearly a year including October. There are some signs of any noticeable rebound in the near term. Imports of goods rose in October after the sharp fall in the previous months. The third quarter data were roughly unchanged and don’t change much ahead of the third quarter GDP due this week, stated Nordea Bank.

Consumers’ credit growth also stayed almost the same in October at around SEK 13.5 billion on the month after falling earlier in 2018. However, credit growth remains too high.