Swedish Inflation Rate Steady at 2.3% in May 2025
Sweden's inflation rate remains at 2.3% in May 2025, raising expectations for Riksbanken interest rate cuts.
Key Points
- • Inflation rate unchanged at 2.3% in May 2025 according to KPIF.
- • Monthly change in KPIF shows an increase of 0.1%.
- • KPI reflects a low inflation rate of 0.2% with no change from April to May.
- • Riksbanken's interest rate decision is due on June 18, 2025.
The Swedish inflation rate, measured by the KPIF (Consumer Price Index with fixed interest), held steady at 2.3% in May 2025, as reported by the Swedish Statistics Agency (SCB). This marks the third consecutive month of stability at this rate, with a slight monthly increase of 0.1% from April to May. Economic commentator Alexander Norén highlighted that this consistent inflation level may prompt Riksbanken to consider potential interest rate cuts, signifying a shift in monetary policy focus. 'Now we have three consecutive months with KPIF at 2.3, and Riksbanken can start to consider whether the economy is weak enough to warrant another rate cut rather than worrying about inflation rising again,' Norén noted.
In contrast, the consumer price index (KPI) indicated a significantly lower inflation rate of 0.2%, remaining unchanged from the previous month. These figures are essential as Riksbanken prepares for its upcoming interest rate decision on June 18, 2025. It is anticipated that if Riksbanken opts for a cut, it may occur in August 2025. Detailed inflation statistics are scheduled to be published on June 13, 2025, offering further insights into the economic landscape.