Expectations of inflation going forward among market players increased marginally in January, according to a survey conducted by Origo Group on behalf of the Swedish Central Bank.
In the one-year perspective, they expect a CPIF inflation rate of 1.8 percent. This can be compared to the one-year expectations in December of 1.7 percent.
In the two-year perspective, expectations remain unchanged at 1.9 percent, while they also increase marginally to 2.1 percent in the five-year perspective – up from 2.0 percent in the December measurement.
The Swedish Central Bank's inflation target is a CPIF inflation rate around 2.0 percent, and expectations of inflation going forward can be an important piece of the puzzle when the board makes decisions on the interest rate.
The next interest rate announcement from the Swedish Central Bank Governor Erik Thedéen and his board will come on January 29. A reduction of 0.25 percentage points to 2.25 percent in the interest rate is expected.
