Inflation rises but still off target

Swedish 12-month inflation was 0.3 percent in April from 0.1 percent in March, mostly because of higher prices for clothes and petrol, Statistics Sweden said on Friday.

Analysts had expected annual inflation to rise to 0.4 percent, according to a market poll by SME-Direkt.

Month-on-month, consumer prices rose 0.1 percent in April as the upward pressure from higher rents, heating oil, clothing and petrol outweighed price cuts for vegetables, electricity and package holidays, the agency said.

When calculated according to a harmonized European index, Swedish prices rose by 0.4 percent over 12 months.

The Swedish central bank, Riksbank, has an annual inflation target of 2.0 percent.