Sweden’s core inflation rate, measured by the KPIF index, declined to 1.3% in June, down from 1.5% the previous month, according to a preliminary calculation released by Statistics Sweden (SCB).
The figure marks a continued easing of price pressures in the Swedish economy, aligning with broader disinflationary trends across the eurozone and Nordic region.
With core inflation now well below the central bank’s 2% target, markets are likely to interpret the data as supportive of further rate cuts in the coming months.
The decline suggests that underlying price dynamics are stabilizing, reducing the urgency for the Riksbank to maintain restrictive monetary policy.
With core inflation now well below the central bank’s 2% target, markets are likely to interpret the data as supportive of further rate cuts in the coming months.
This development adds to the growing consensus that the peak of the inflationary cycle has passed, allowing policymakers to focus on supporting economic growth.
The drop in KPIF follows a period of heightened volatility driven by energy price shocks and supply chain disruptions.