Swedish May Inflation Exceeds Forecasts, Anticipates Further Rate Cuts

In May, Swedish inflation exceeded expectations, although analysts anticipate a downward trend in the coming months, prompting continued monetary easing by the central bank following a recent rate cut. 

Inflation, which surged to over 10% at the end of 2022, has moderated significantly recently, with May's data showing Consumer Price Index with a fixed interest rate (CPIF) rising 0.2% from April and 2.3% year-on-year, excluding volatile energy prices. Analysts had predicted May's headline inflation at 2.1% and inflation excluding energy at 2.7%. 

Factors such as events like Taylor Swift concerts in Stockholm and the Eurovision final in Malmo were cited as contributors to the slight overshoot. 

Looking ahead, economists expect CPIF inflation to fall below the Riksbank's 2% target by the year-end, prompting potential further rate cuts from the current 3.75% to 3.00%.

Paraphrasing text from "Reuters" all rights reserved by the original author.