The past few months have seen the price of coffee soar, which has not gone unnoticed, not even by the central bank's board of directors, led by Erik Thedéen.
After the final inflation figures were presented earlier in the week, Thedéen notes that it could have been worse in terms of inflation if many more food items than just coffee had soared.
There are indications that the coffee price will come down, primarily due to the harvests in South America, he notes.
Moreover, inflation expectations have fallen back. Market players now believe that inflation will land at 2.1 year from now, according to the KPIF measure, i.e., nearly in line with the Swedish Central Bank's inflation target of 2.0 percent.
These are small changes, we haven't said they were elevated but in line with the target. We wouldn't have wanted to see inflation expectations rise even more, so it's welcome.
Thedéen notes, however, that there is still great uncertainty, including in relation to trade policy and tariffs.
There is, says Thedéen about potential risks of an inflation upswing.
It's partly how the tariffs will hit, but there are also higher price plans in the retail sector. It's clear that there is a risk, but it's not the main scenario, but something we have with us.
