Sweden's Consumer Prices Rise Less Than Expected in July 2025
Consumer inflation in Sweden rose by 0.8% in July, prompting possible interest rate cuts.
Key Points
- • Consumer prices in Sweden rose by 0.8% in July, less than the expected 0.9%.
- • Core inflation dropped more than anticipated, increasing the chances of a rate cut in September.
- • Clas Ohlson reported a 10% increase in sales due to warm weather.
- • Lundin Mining's revenue exceeded expectations in Q2.
In Sweden, consumer prices increased by 0.8% in July 2025, falling short of analysts' expectations of a 0.9% rise. This smaller-than-anticipated inflation spike has led to speculations regarding potential monetary policy shifts, particularly a possible interest rate cut by the Riksbank in September, as suggested by Jens Magnusson, chief economist at SEB.
The core inflation rate also decreased more than expected, reinforcing the likelihood of adjustments to monetary policy in the near future. Despite the dampening inflation news, certain sectors showed resilience; Clas Ohlson reported a robust 10% rise in sales in July, buoyed by favorable warm weather that improved sales for seasonal products.
Meanwhile, Lundin Mining experienced positive financial performance, exceeding revenue expectations in the second quarter. Conversely, Goldman Sachs has downgraded its price target for Novo Nordisk following a profit warning, negatively affecting its stock price.
Overall, the current inflation data presents a mixed picture for the Swedish economy, as consumers and businesses alike navigate through fluctuating price trends and economic conditions.