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Economy

Inflation in Sweden jumps for second month in a row

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TT/The Local - news@thelocal.se
Published: 6 Mar, 2025 CET. Updated: Thu 6 Mar 2025 09:37 CET
Inflation in Sweden jumps for second month in a row
Inflation has risen for the second month in a row. Photo: Fredrik Sandberg/TT

Inflation in Sweden has increased for the second month in a row with prices rising faster than expected. Further cuts to interest rates in the short term are now looking increasingly unlikely.

Preliminary data from Statistics Sweden showed that inflation, stripping out the impact of mortgage rates (KPIF), rose by 2.9 percent in February, continuing a trend of rising inflation that began in January, when KPIF inflation rose by 2.2 percent. 

"This shows that last month's increase was no anomaly," Alexandra Stråberg, chief economist for Länsförsäkringar, told the TT newswire. "This is going to cause problems for the Riksbank [central bank]. The Riksbank is going to stay in a wait-and-see mode." 

The Riksbank's mandate is to keep inflation at around 2 percent over time, so inflation of 3 percent will make it more likely it keeps its main interest rate at the current level of 2.25 percent. In the longer run, if inflation continues to rise, it may even lead to a rate increase. 

Statistics Sweden is due to publish more detailed inflation figures on March 13th. 

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#Economy #Cost of living

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Uk
"Further cuts to interest rates in the short term are now looking increasingly unlikely." I thought the rate cuts were too fast & too optimistic and it looks like the Riksbank is now being confronted with that reality. I hope the economic fundamentals change for the better in order to support more rate cuts.
Montgomery Webster
Isn't 2.25% a pretty good base, long-term rate? How low are we going to go? Negative again?
Mike
True SMJ! Technically everyone who came here and pay taxes but was not a cost during education stage is a gain. But for Uffe the most important is not our Sweden, but his position.
SMJ
And the Govern concerned with the "Family of four from Non EU countries, with high school degree and high skilled that comes to Sweden to work" that cannot get citizenship without "Prata Svenska flytande". It is a bad joke!

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