October 07, 2024 07:15 GMT
SWEDEN: Small Rise In 5-year Ahead Inflation Expectations Won’t Concern Riksbank
SWEDEN
Swedish money-market participant 5-year ahead inflation expectations rose a tenth to 2.2% in October, according to Prospera. However, the Riksbank will likely focus more on the quarterly version of this survey (next released in December) when considering whether to adjust policy based on inflation expectations alone.
- In the September quarterly survey, 5-year ahead inflation expectations across money market participants, labour market parties and purchasing managers were well-anchored at the 2.0% target.
- Should these expectations fall notably below 2% in December, it would increase pressure on the Riksbank to ease policy more aggressively.
- In October (today's release), 1-year and 2-year ahead money-market CPIF expectations were unchanged at 1.7% and 1.8% respectively.
109 words