Nordea’s Torbjörn Isaksson reports that Sweden’s CPIF and CPIF ex Energy indices have confirmed at low levels year-on-year, with seasonally adjusted core metrics well below the 2% target. Despite a rebound in inflation in core services, overall pressure remains moderate. Nordea expects core inflation to decline further and the Riksbank will leave its key interest rate unchanged at 1.75% next week.
CPIF cushioned data confirms the Riksbank’s continued policy
“Overall, February inflation performed well in line with our forecast.”
“Inflation pressures are low and we expect core inflation to decline further in the coming months.”
“The war in the Middle East and rising energy prices will add about 0.5 percentage points to CPIF headline inflation in the near term.”
“So so far the immediate impacts are not drastic and economic growth has started from a low starting point.”
“However, uncertainty is significant. We expect the Riksbank to adopt a wait-and-see attitude next week and keep its key interest rate unchanged at 1.75%, while emphasizing that it is ready to take action if necessary.”
(This article was created with the aid of an artificial intelligence tool and has been reviewed by an editor.)
