Swedish inflation remains volatile. The CPIF inflation came in at 0.7 percent year-on-year in June, above expectations. Excluding energy, CPIF rose to 1.3 percent year-on-year, 0.2 percentage points higher than expected.
Prices are still volatile, and there were surprises in several price categories, mainly in goods. Prices for clothing and footwear were expected to fall. Rises in car rental prices were an upside surprise, contributing 0.13 percentage points to CPIF month-on-month. Energy prices were a main contributor to the headline figures. Food prices declined more than expected.
“The exchange rate is still giving prices on goods a push upwards. 2.7 percent of the CPI basket was still imputed due to absence of consumption, just a little less than in May (2.9 percent). Today’s numbers are a small windfall for the Riksbank, but inflation is not a focal point for the bank right now. If anything, this reduces the likelihood for a rate cut even further”, said Nordea Bank.
