Sweden’s inflation slows to lowest level since January 2022

Sweden’s annual consumer inflation has eased to 4.1% in March from 4.5% in February, the latest data by Statistics Sweden showed, which added to prospects of an earlier interest rate cut by Riksbank.

It has been the lowest inflation rate since January 2022, as prices dropped for the first time for food & non-alcoholic beverages, by 0.7% year-on-year.

Prices also went down for communications, by 0.7% YoY, and furnishings & household goods, by 0.7% YoY.

Meanwhile, prices moderated for housing & utilities (9.3% YoY versus 9.4% YoY in February), clothing & footwear (4.9% YoY versus 5.1% YoY in February), recreation & culture (3.1% YoY versus 3.3% YoY in February), and restaurants & hotels (4% YoY versus 4.2% YoY in February).

In month-over-month terms, the nation’s consumer prices edged up 0.1% in March, while easing from a 0.2% rise in February.

The EUR/SEK currency pair settled 0.60% higher at 11.5688 on Friday. For the week, the exotic pair advanced 0.36%, as it extended a string of four consecutive weekly gains.