Inflation & Prices

Sweden Surprise Inflation Jump Puts Riksbank Easing at Risk

  • Core inflation rate rose to 3% in February, a nine-month high
  • Data reduces likelihood of rate cut expected from the Riksbank
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Sweden’s core inflation defied forecasts by accelerating for a second straight month, strengthening the chances that the Riksbank will call an end to its easing campaign.

A measure of annual price increases excluding energy rose to 3% last month, the fastest pace in nine months, Statistics Sweden said on Thursday, citing a preliminary estimate. The outcome was above all forecasts in a Bloomberg survey of analysts that had a median of 2.7%, while the Riksbank had expected a 2.4% gain.