KI warns inflation will rise to 2.6 percent in 2027

This year, however, growth will rise to 3.0 percent, according to KI's report The Economic Situation.

The recovery in the Swedish economy has come a long way, says KI's head of real economic analysis, Magnus Åhl, at a press conference.

KI's forecast assumes that the policy rate will be raised four times by the end of 2028, to 2.75 percent.

Inflation according to the CPIF measure - which according to the inflation target should be 2.0 percent - is expected to rise to 2.6 percent on average in 2027, moderate to 2.2 percent in 2028 and 1.8 percent in 2029.

Inflation is low now, but will rise rapidly in the future, says Åhl, adding:

Next year, energy prices will fall gradually and inflation will eventually fall back towards the target.

KI points out that forecasts are always associated with uncertainty.