Swedish headline inflation eases in June, flash data shows

Swedish inflation cooled in June, according to a flash estimate released July 8. Headline prices measured with CPIF rose 1.3% year-on-year, while core inflation excluding volatile energy costs was 0.4% annually. Statistics office official Mikael Nordin said the slowdown reflected lower food and transport costs, leaving the June outcome slightly above analysts’ and the Riksbank’s expectations. The central bank has previously noted that rising price pressures create a 50-50 chance of a rate hike before year-end. Reuters reports that Gulf conflict has flared again, though oil prices have fallen back to March levels. Separate data showed the economy grew 0.9% in May versus the prior month and 3.9% versus May 2023, driven by higher services production and lower imports. The Riksbank’s next decision is Aug. 20; final inflation data are due July 15.