Swedish 5-year inflation expectations fall in March
3:33 am Thursday, March 16th, 2023
STOCKHOLM (Reuters) – Long-term inflation expectations among financial and business groups in Sweden fell in March, a poll commissioned by the central bank showed on Thursday.
Inflation measured with a fixed interest rate five years ahead, the horizon watched most closely by the central bank, was seen at 2.2% versus 2.3% three months earlier.
Inflation expectations close to the 2% target have been one of few bright spots for the Riksbank as it is struggling to force down unexpectedly high consumer prices. It has raised interest rates to 3%, with more hikes expected, from zero a year ago.
This week, annual headline inflation came in at 9.4%, in line with the Riksbank’s forecast in February. But underlying price pressures – stripping out volatile energy prices – jumped to 9.3% year-on-year from 8.7% in the previous month.
In one year, CPIF inflation was seen at 4.8%, the poll by Kantar Sifo Prospera showed.
Looking only at money market players, CPIF inflation was seen at 4.8% in one year and at 2.2% five years ahead, the survey showed.
(Reporting by Johan Ahlander; editing by Niklas Pollard)
