Sweden: Focus on January inflation data – Danske Bank
|In Sweden we get the January inflation data and there is always some uncertainty related to clothing this month due to sales, but there is also seasonal sales in furniture and electronic equipment, suggests Analyst, Jens Peter Sørensen at Danske Bank.
Key Quotes
“Together this results in our expected CPIF m/m change at -0.7% (same as market). More, updates to the CPI basket could as always in January result in surprises. However, over the past few years such surprises have been rare or very small. The CPIF y/y is expected to be 1.9%, which is the same as both consensus and Riksbank’s updated projection.”
“Last week Riksbank expressed concerns over the inflation and especially the recent move lower in service inflation. In fact, Riksbank was, in our view, close to shifting the rate path, i.e. postponing the first rate hike. A lower-than-expected inflation reading today, driven by lower service inflation, could move the market a bit, sending interest rates in shorter maturities lower, since market’s implied repo rate path is close to, or a tad above, the Riksbank’s path.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.