Sweden's Core Inflation Rate Slightly Exceeds Expectations in May

Sweden's core inflation rate in May rose slightly above analysts' expectations, potentially easing policymakers' concerns about the potential consequences of the war in Iran. According to Jin10, preliminary data released by Statistics Sweden on Thursday showed that the inflation rate, excluding energy, increased to 0.5% in May, up from 0% the previous month, which was near a thirty-year low. Analysts had predicted a median forecast of 0.3%, while the Swedish central bank had projected 0.9% in March. Central bank governors across Europe are monitoring whether rising energy prices due to the Middle East conflict are broadly increasing costs in their economies. Meanwhile, Sweden's inflation rate has declined in recent months as cuts in food and fuel taxes have helped shield households from soaring prices. The Swedish central bank stated that it expects to maintain interest rates at 1.75% in the short term while awaiting more data on the outlook. The bank also noted that it sees a continued risk of rising price pressures in the future.