Danske Bank expects Swedish CPIF inflation to rise to 1.6 percent in September from 0.7 percent in August. This is according to the bank’s inflation forecast ahead of next week’s preliminary figures.
The increase is expected to be driven primarily by higher energy prices, while core inflation is also expected to rise more moderately across both goods and services.
The bank also highlights the risk of higher food prices due to a possible strong El Niño, on top of already high energy prices and disruptions in the agricultural market. IKEA’s announced price cuts in Europe, however, are expected to dampen price increases for furniture in Sweden.
