The CPIF inflation measure – where mortgage interest effects have been excluded – rises to 2.3 percent. This can be compared with an expected rise to 2.4 percent, from 2.2 percent in March.
The Riksbank’s inflation target is CPIF inflation of 2.0 percent.
– It’s good news and it’s still going in the right direction, says Alexander Norén, economic commentator at SVT Nyheter.
Before the announcement, analysts expected inflation to rise slightly in April after the low level in March. This is due to higher food prices.
According to the CPI measure, Swedish inflation fell to 3.9 percent in April compared to 4.1 percent in March. A decline that was unexpectedly large.
Stagnant food prices
Food prices were largely stable in April, compared to the previous month, new figures from Statistics Sweden (SCB) show.
“We haven’t seen such a small change in food prices between two months since spring 2017,” says Caroline Neander, price statistician at Statistics Norway.
Interest rate cuts
Earlier in May, the Riksbank lowered the policy rate for the first time in over eight years, down to 3.75 percent.
In connection with this, Riksbank governor Erik Thedéen flagged for two further interest rate cuts to 3.25 percent this year – if the inflationary trend continues.
Later this afternoon, at 14:30 Swedish time, US inflation figures for April will be published.