Swedish Inflation Backs Riksbank Case for Abating Price Pressure

Swedish Inflation Backs Riksbank Case for Abating Price Pressure
Swedish Inflation Backs Riksbank Case for Abating Price Pressure

(Bloomberg) — Sweden’s underlying inflation remained unchanged last month in a vindicating sign for the Riksbank, which last week became the second major developed-world central bank to cut interest rates.

The core inflation rate, which strips out energy costs and the effect of interest-rate changes, remained unchanged at 2.9% in April, according to a statement from the statistics office on Wednesday. That was lower than the 3% median estimate in a Bloomberg survey of economists as well as the central bank’s 3.3% forecast, published in March.

The data validates the Riksbank’s assessment that price pressures are dissipating and inflation is trending toward its 2% target. That view gave policymakers enough confidence to lower borrowing costs for the first time in eight years, moving ahead of its larger peers despite the risk that it would weaken the krona and thereby fuel price increases on imported goods.

Read More: Riksbank Kicks Off Easing With First Rate Cut Since 2016

The Swedish currency weakened as much as 0.1% after the news, trading at 11.6901 per euro as of 8:02 am in Stockholm.

The Riksbank’s CPIF target measure for inflation rose to 2.3%. Economists had expected a CPIF increase of 2.4% on an annual basis.

–With assistance from Joel Rinneby.

©2024 Bloomberg LP

-

-

PREV What price for the restyled BMW 4 Series Gran Coupé and i4?
NEXT “The French team will be finished after the Euro”: Olivier Giroud retires from international football