KaiTuo Macro: Swedish inflation may resume downward trend

Jinshi Data News on September 9th, Sweden’s inflation data for August will be released on Thursday. Macro pointed out that Sweden’s inflation rate may resume its downward trend in August, which should prompt the Swedish Central Bank to cut interest rates at its remaining three meetings this year, lowering the policy interest rate from 3.5% to 2.75%. Sweden’s target index CPIF inflation rose from 1.3% in June to 1.7% in July, but this was due to the pump of energy prices, while the core index, CPIF inflation excluding energy, decreased slightly. Macro predicts that Sweden’s household energy inflation may decline in August, and CPIF inflation excluding energy may also decline. It is expected that the CPIF inflation rate in August will be 1.3%, and the CPIF inflation rate excluding energy will be 2.0%. Macro expects that Sweden’s CPIF inflation rate will remain below 2% for the rest of this year.