Sweden: Upside surprise in inflation - TDS

Analysts at TD Securities explains that Sweden’s December inflation report came out largely in line with expectations, with a slight upside surprise for headline CPIF at 2.2% y/y.

Key Quotes

“The CPIF ex-energy component came in at 1.5% y/y, but both in line with the Riksbank's recent forecasts. Looking through the details, package holidays, food, and home furnishings saw strong monthly gains, while communications prices continue to drag.”

“Given the next Riksbank hike is unlikely until the second half of the year, they'll take comfort in today's data, but hope to see continued constructive inflation figures through the next 6-9 months.”