Swedish flash consumer inflation eases to +1.1% in September
Adds currency in 4th paragraph, background in paragraphs 8-9
OSLO, Oct 7 (Reuters) -Swedish consumer prices, measured with a fixed interest rate (CPIF), rose1.1% year-on-year in September, flash estimates released by Statistics Sweden showed on Tuesday.
The flash estimate for September was down from a 1.2% final reading for August published last month. The central bank is targeting2% inflation year-on-year.
The final Swedish consumer prices for September will be released on Oct. 15.
The Swedish crown currency weakened slightly to trade at 11.37 against the euro by 0606 GMT from 11.36 just ahead of the data release.
The flash estimate, a new measure by Statistics Sweden, is a preliminary indicator for the aggregated inflation that will be published five working days before the regular publication of the Consumer Price Index (CPI), the agency said.
The Swedish economy has been in the doldrums for the past couple of years as soaring inflation and the interest rate hikes to bring it back under control weighed heavily on consumer spending and left the government unable to crank up stimulus.
However, inflation has tumbled from a peak above 10% and run below the Riksbank's 2% target in recent months, allowing the central bank to cut interest rates twice and project further easing at every remaining policy meeting this year.
Some economists expect the Riksbank to cut its key policy rate by a heftier 50 basis points at one of the year's remaining meetings but Deputy Governor Per Jansson said last week that quarter point cuts remained the main scenario .
A fiscal boost is also on the way after Prime Minister Ulf Kristersson's right-wing government planning to raise spending by 60 billion Swedish crowns ($5.8 billion) next year partly in the shape of tax cuts to bolster economic growth.
Reporting by Terje Solsvik and Niklas Pollard, editing by Louise Rasmussen and Kim Coghill
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