On an annual basis, consumer prices, CPI, rose by 1.6 percent, surpassing the Bloomberg analyst consensus of 1.5%.

The preliminary figures for the inflation rate according to KPIF increased from 1.1% in September to 1.5% in October.

“Inflation rate according to CPI is expected to remain unchanged in October, while KPIF is expected to rise,” said Carl Mårtensson, a price statistician at SCB.

SEB predicts that today’s figure will be of extra significance ahead of the next interest rate decision in December.

“We expect KPIF excluding energy to remain at 2.0%, which is slightly higher than the Riksbank’s forecast. KPIF including energy, we believe, will increase to 1.3%,” the bank wrote in a morning briefing before the figures were released.

Double rate cut likely

This is the second time that SCB has released a quick CPI, a preliminary figure before the full report, which will be released on October 14.

At 09:30, the Riksbank will announce its interest rate decision. The majority of interest rate traders are anticipating a double rate cut. Economists, including Christina Nyman, chief economist at Handelsbanken, and Ulf Andersson, chief economist at DNB, also see a double rate cut as the most likely scenario.

“Riksbanken, I believe, will lower by 50 basis points, and the Fed by 25 basis points,” said Christina Nyman. Ulf Andersson also predicts a double rate cut.

This upcoming decision from the Riksbank will have significant implications for the economy and financial markets. The anticipation and speculation surrounding the interest rate decision highlight the importance of monetary policy in shaping the economic landscape. As experts and analysts weigh in on the potential outcomes, investors are closely monitoring the situation to adjust their strategies accordingly. The interconnectedness of global markets and central bank actions underscores the complexity and uncertainty of the current economic environment.

Overall, the dynamics at play in the Swedish economy reflect broader trends in the global economy, where central banks are navigating a delicate balance between stimulating growth and controlling inflation. The upcoming interest rate decision by the Riksbank will provide valuable insights into the future direction of monetary policy and its impact on various sectors of the economy. As stakeholders await the outcome, the significance of these decisions cannot be understated in shaping the economic outlook for Sweden and beyond.

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