Swedish inflation rate decreases sharply

Special Report:Global Financial Crisis

STOCKHOLM, Dec. 9 (Chinese media) -- The annual inflation in Sweden fell back to 2.5 percent in November from 4.0 percent in October, Statistics Sweden said Tuesday.

This is the sharpest drop in almost 15 years in the country, the agency said in a statement.

It contributed the fallback to lower consumer prices, lower interest costs and lower prices on fuel.

The consumer prices decreased on average by 0.8 percent from October to November and the interest costs and fuel prices fell 5.7 percent and 9.1 percent.

It was the first time since October 2007 that inflation crept within the Swedish central bank's target range -- 2 percent with a cushion of 1 percent on each side.

Last week the Swedish central bank cut its key interest rate by a record 1.75 percentage points to 2 percent in a move to ease the effects of the financial crisis. So the inflation will continue to fall in the coming months.