Swedish May inflation above forecast but more rate cuts expected
Headline inflation unchanged at 2.3% in May vs forecast 2.1%
Ex-energy inflation 3.0% vs 2.9% in April
Riksbank cut rates in May, sees two more cuts this year.
Recasts lead, adds analyst comment in paragraph 7, adds graph
By Simon Johnson
STOCKHOLM, June 14 (Reuters) - The pace of Swedish inflation was higher than expected in May, data showed on Friday, but analysts said they saw inflation tracking down in the months ahead and that the central bank would continue to ease policy after a cut last month.
Inflation, which peaked at over 10% at the end of 2022, has been slowing significantly in recent months and analysts said that the May data had not changed the overall picture.
Consumer prices measured with a fixed interest rate (CPIF)rose 0.2% from April and 2.3% from the same month last year, the statistics office said.
Excluding volatile energy prices, a measure the Riksbank is currently paying extra attention to, inflation was 3.0% compared to the same month a year ago.
Analysts had forecast May headline inflation in Sweden of 2.1% and inflation excluding energy of 2.7%.
Analysts blamed some of the overshoot on three concerts by pop icon Taylor Swift in Stockholm and the final of Eurovision in Malmo in May.
"We remain confident that CPIF inflation will undershoot the Riksbank's 2% target in the second half of the year, prompting policymakers to cut the policy rate from 3.75% currently to 3.00% by the year-end," Adrian Prettejohn, European Economist at Capital Economics said.
Food, air travel and package holidays pushed up inflation, according to the statistic office's figures.
The Riksbank cut its key rate inMay for the first time in eight years, arguingthat the fight against inflation was almost done. It expects to maketwo more cuts this year, probably in the second half.
However, the ECB , which cut its key rate last week, and the U.S. Federal Reserve have struck a cautious note about their future plans to lower borrowing costs and this could still affect the Riksbank.
The Riksbank's most recent forecast, in March, was for headline inflation of 2.6% and inflation excluding energy of 2.9%. In April, thoseinflation readings were 2.3% and 2.9%, respectively.
The Riksbank announces its next policy decision on June 27.
Swedish rates and inflation: http://tmsnrt.rs/1qEN4Rz
Reporting by Simon Johnson, editing by Terje Solsvik, Anna Ringstrom and Gareth Jones
Mga Kaugnay na Asset
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
