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Bloomberg
Swedish inflation surged more than expected in April, increasing expectations country’s central bank will have to speed up rate hikes it flagged last month to restore trust in its policy target.
The central bank’s target measure, CPIF, accelerated to 6.4% on an annual basis in April, the highest level since 1991, according to data released by Statistics Sweden on Thursday. Economists surveyed by Bloomberg expected prices to rise by 6.2%.
The Riksbank, which has embarked on a series of rate hikes, had expected price increases of 5.9%. In conjunction with its April 27 decision, the bank said it expects to raise borrowing costs two or three more times this year, but the higher-than-expected inflation casts doubts on whether that will be enough.