Moderate inflationary pressure in 2012

Our chief analyst, Torbjörn Isaksson, has just published an update on Swedish inflation.

In our view, inflationary pressure will be moderate during 2012. Domestic cost pressure is rising slightly from a low level in the wake of the rapid economic upturn of recent years.

Also, imported inflation, which was very low in 2011, will probably rise slightly. All measures of inflation are, however, below the 2% target. In combination with rising unemployment, this suggests that the Riksbank will continue to cut rates. We expect the repo rate to be cut to 0.75% in the autumn.

Read more in the full report below.

Best regards,
Mikael Sarwe

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