Swedish CPI inflation report for May was released today at 7:00 am BST and turned out to be a hawkish surprise. Headline CPI inflation slowed much less than expected, while core CPI unexpectedly accelerated to 3.0% YoY. SEK moved sharply higher following the release with EURSEK dropping around 0.3%. However, big part of the move has been erased already.
Markets are pricing in more than a full rate cut from Riksbank by August. However, higher and persistent inflation may change Banks plans and they may communicate it on the June meeting.
Sweden, CPI inflation for May
- Headline (annual): 3.7% YoY vs 3.5% YoY expected (3.9% YoY previously)
- Headline (monthly): 0.2% MoM vs -0.1% MoM expected (0.3% MoM previously)
- Core (annual): 3.0% YoY vs 2.7% YoY expected (2.9% YoY previously)
- Core (monthly): 0.8% MoM vs 0.5% MoM expected (0.4% MoM previously)
Source: xStation5
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