Swedish Inflation Surprise Spurs Bets on Rate Cut Next Month
- March core price growth well below forecasts on food cost drop
- The Riksbank has said it expects to cut rates in May or June
Consumer sentiment in Sweden has strengthened recently.
Photographer: Mikael Sjoberg/BloombergThis article is for subscribers only.
Sweden’s underlying inflation rate fell more than expected in March, fueling expectations for the Riksbank to start cutting interest rates ahead of major peers next month.
A closely followed measure that strips out energy costs and the effect of interest-rate changes increased 2.9% from a year ago, a 26-month low, according to a statement from Statistics Sweden. That was less than the 3.2% expected by economists surveyed by Bloomberg as well as the 3.3% that the Riksbank projected.