Higher-than-expected inflation in July, however, in practice, inflation has held steady this year.
Has anyone noticed that Swedish growth has slowed substantially this year? If q/q data for GDP in H2 come in as they did in H1, fourth-quarter GDP will fall to 1.5% y/y. If this reflects capacity constraints, inflation should pick up again but if it is just a matter of a normalisation after a very strong 2015 (and inflation does not pick up again), the Swedish krona may become even more crucial for the Riksbank.
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