Swedish CPIF inflation came in above Riksbank’s projection in September. On a year-on-year basis, CPIF inflation accelerated to 2.5 percent in the month, the highest level since October 2008, and 0.1 percentage point above Riksbank’s projection. The outcome underpins the view of a rate hike in December. Excluding energy, the CPIF inflation came in at 1.6 percent year-on-year. This is consistent with the central bank’s forecast. Inflation gauged by CPI accelerated to 2.3 percent in September from 2 percent in August.
Services inflation accelerated more than anticipated while the uptick in goods inflation was in line with projection. The outcome underpins the view of a rate hike in December, noted Nordea Bank.
Looking at details, food prices rose more than anticipated, while prices for foreign travel were below than forecast. Prices for hotel accommodation rose, contributing 0.05 percentage point to the monthly change in the CPIF, also that higher than expected. Fuel prices also came in above forecast.