Consumer prizes keeps falling in Sweden.

The inflation rate was negative 0.7 percent in November, the statistics office said Thursday. That’s deeper than expected according to a SME Direkt poll forecasting an inflation drop of only 0.1 percent.

The Swedish consumer price index was unchanged from October to November.

“The higher inflation rate in November compared to October was mainly explained by the substantial price decrease for petrol from October to November last year”, Statistics Sweden said.

Deflation can hit economic growth because it reduces businesses profits and discourages investment.

Sweden's GDP decreased by 5.0 percent in the third quarter, in working-day adjusted figures compared to the third quarter of 2008.