Swedish CPI inflation likely to have accelerated in June

The upcoming Swedish CPI data, which will be released on July 12, is likely to have recorded a rise in June. According to a Nordea Bank research report, the CPI inflation is expected to have accelerated 0.2 percent on month-on-month basis in June. Meanwhile, the CPIF-inflation is likely to have accelerated to 1.5 percent in June from previous month’s 1.1 percent.

In June, energy prices and prices for foreign travelling increased in June, thereby stimulating the CPI by about 0.2 percent points, noted Nordea Bank. Meanwhile, clothing prices and footwear prices fell as summer sales in June began. For other goods and services also, the changes in price were modest.

The CPIF inflation in Sweden, including or excluding energy, is expected to be around 1.5 percent for the rest of this year and also throughout the next year. At present, there are two divergent trends. Firstly, an accelerating domestic inflation, and secondly, a falling imported inflation. When combined, these two trends do not add up to the target level of 2 percent, added Nordea Bank.