Swedish inflation expectations rise for all time horizons in January

Swedish inflation expectations based on CPI rose for all time horizons in January, showed Prospera’s monthly survey including only money market players. Expectations are at or above the 2 percent measured with the consumer price index.

The five-year expectations came in at 1.98 percent, whereas two-year expectations came in at 2.1 percent. The one-year expectation came in at 2 percent. But five-year expectations of CPIF-inflation were unchanged at 1.9 percent. The CPIF has just been included in the survey since October 2017 and has fallen since then.

“It is a short time series and thus a bit tricky to interpret, but if anything a sign that it remains a challenge for the Riksbank to anchor inflation expectations at the target”, stated Nordea Bank in a research report.

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