Sweden: CPIF-inflation stood at 1.9% in April – Nordea Markets

Andreas Wallström, Research Analyst at Nordea Markets, notes that Sweden’s CPIF-inflation stood at 1.9% in April, well in line with their and the Riksbank’s forecast, while the CPIF ex energy came in at 1.4%, which is in line with the Riksbank’s view.

Key Quotes

“Somewhat higher food prices and lower ticket prices for foreign flights than we expected.”

“Our forecast of core inflation for the next 12 months is marginally lower than the Riksbank’s ditto. Longer out, however, the differences are growing and we expect falling inflation later in 2019. In our view this, coupled with lower GDP growth and continued uncertainty related to the housing market, will keep the Riksbank side-lined until Q4 2019 when we’ve pencilled in the first rate hike.”