Sweden: CPIF-inflation stood at 2.2% in July – Nordea Markets

Andreas Wallström, Research Analyst at Nordea Markets, notes that Sweden’s CPIF-inflation stood at 2.2% in July, well in line with expectations and the prices for services inflation declined.

Key Quotes

“Core inflation (CPIF ex energy) came in at 1.3%, which is 0.1% points below the Riksbank’s view.”

“Prices for services inflation, important for the Riksbank, declined somewhat further.”

“We forecast core inflation to gradually increase until reaching to 2.0% during spring 2019. This is fully in line with the Riksbank’s forecast.”

“Thereafter, however, we expect inflation to fall back to its historical average at 1.5% while the Riksbank sees inflation stabilizing at 2.0%.”