The pace of Swedish inflation was higher than expected in May, data showed on Friday, raising concerns that price pressures may prove more persistent than hoped by the central bank, which has started to lower interest rates.
Consumer prices measured with a fixed interest rate (CPIF) increased by 0.2% compared to April and by 2.3% compared to the same month last year, the consumer office said. statistics.
The central bank is targeting an inflation rate of 2% for the CPIF.
Excluding volatile energy prices, a measure that the Riksbank currently pays particular attention to, inflation was 3.0% compared to the same month of the previous year.
Headline inflation and non-energy inflation exceeded forecasts by analysts and the Riksbank, which cut its key rate in May.
may
in May, arguing that the fight against inflation was almost over.
She forecasts two more declines this year, probably in the second half of the year.
One month’s figures are unlikely to impact those plans, but the reading echoes concerns in other parts of the world that inflation could take hold.
There
ECB
which lowered its key rate last week, and the
US Federal Reserve
were cautious about the upcoming lowering of interest rates.
Analysts forecast headline inflation of 2.1% in Sweden for May and non-energy inflation of 2.7%.
The Riksbank’s most recent forecasts, from March, put headline inflation at 2.6% and non-energy inflation at 2.9%. In April, inflation was 2.3% and 2.9%, respectively.
The Riksbank will announce its next monetary policy decision on June 27.
