Swedish Central Bank: Inflation Watch Amid Global Turbulence

The Swedish central bank remains vigilant on inflation despite global uncertainty, as it expects consumer price rises to stay above the 2% target. First Deputy Governor Anna Breman sees the policy rate path as a reflection of risk outlook due to potential impacts from international shifts and U.S. tariffs.

The Swedish central bank continues to monitor inflation levels closely, maintaining that its economic outlook holds steady despite overseas volatility. A recent inflation spike has caught attention, but the board believes it to be largely temporary, said a board member on Thursday.

This year, inflation in Sweden has surpassed expectations. Although the Riksbank anticipates that consumer price hikes will remain above the 2% target throughout the year, board members generally concur that the increase seems transitory. 'Given the substantial upheavals abroad, there is significant uncertainty even in the short term,' said Swedish Central Bank First Deputy Governor Anna Breman, regarding the bank's policy rate forecast.

'I view the policy rate path more as a reflection of risk outlook than a precise prediction of an unchanged rate for three years,' Breman elaborated. She noted the concerning elevation of pricing plans among retailers, as highlighted in a recent national economic survey. The board is closely observing pricing strategies and inflation expectations with high alertness.

(With inputs from agencies.)