Economics
Swedish Inflation Shows Energy Fueling Broader Price Rises
- January core price growth was 2.5%, much higher than forecast
- Data adds pressure on the Riksbank to reverse dovish policy
Shopppers in Gothenburg, Sweden.
Photographer: Nora Lorek/BloombergThis article is for subscribers only.
Sweden’s core inflation rate exceeded forecasts last month, casting doubt over the Riksbank’s plans to keep its policy rate unchanged at zero until 2024.
The central bank’s target measure, CPIF, as expected fell to 3.9% in January on the back of easing electricity prices, according to data released by Statistics Sweden on Friday. At the same time, the measure that excludes energy increased to 2.5%, compared with 1.9% forecast by both the Riksbank and economists surveyed by Bloomberg.