STOCKHOLM: Short term inflation expectations in Sweden have risen this month, a survey commissioned by the central bank showed on Wednesday, taking some pressure off it to ease policy further.
Money market players saw inflation in one year at 0.7 percent and in two years at 1.3 percent, the poll by TNS Prospera showed. That compared with 0.6 percent and 1.2 percent respectively in the January survey.
Long term inflation expectations were unchanged from the previous month however, with inflation seen at 1.7 percent in five years.
“The figures were a little higher than expected and even if the Riksbank is still under pressure, this is a small relief for them,” SEB analyst Olle Holmgren said.
Sweden’s Riksbank is targeting 2 percent inflation but has undershot that goal for several years.
Last week, the bank cut the repo rate by 10 basis points to minus 0.10 percent and said it would start buying government bonds to push up prices and restore market faith in its inflation target.
The central bank was given some relief also on Tuesday, when data showed consumer prices fell less than expected.