Inflation in Sweden rises to 1.7 percent for July despite central bank target

New inflation figures released today show a slight increase to 1.7 percent for July, according to the KPIF measurement, which excludes mortgage effects. This is up from 1.3 percent in June. The rise in inflation is attributed to year-on-year comparisons, meaning fluctuations can occur each month based on factors like energy prices.

Despite this increase, inflation remains below the central bank’s target of 2 percent, although it surpasses the forecasted 1.6 percent for July. The recent data is viewed as aligned with expectations.

In May, the central bank lowered the policy interest rate for the first time in eight years. Next week, the Riksbank will announce a new rate. Economic commentator Alexander Norén anticipates further reductions. “On paper, it’s the right time to lower the rate, as inflation continues to fall below the Riksbank’s target. This report suggests everything is proceeding as planned,” he commented.

In related news, inflation figures from the United States were released, indicating a decrease to 2.9 percent in July, down from 3.0 percent in June. Analyst predictions had suggested a stable rate of 3.0 percent for July.

As discussions continue around potential rate cuts and their impact on mortgage rates, audiences are encouraged to pose questions to economic experts for deeper insights.