Inflation expectations among Sweden's labour market parties, purchasing managers and money market players have eased in June from March, results of a survey carried out by the market research firm TNS SIFO Prospera revealed Wednesday.
All survey participants expect annual inflation to be 1.5 percent in the first year, which is less than 1.7 percent forecast in March. The expected figure for the second year was 1.9 percent, lower than 2 percent seen earlier. In five years, inflation is seen at 2.1 percent, down from 2.2 percent expected in March.
The expectations on GDP growth was also lower in the latest survey. The GDP growth forecast for the first year was lowered to 1.4 percent from 1.6 percent. In the second year, the economy is seen expanding 2 percent, slower than the 2.3 percent expected earlier.
Expectations on wage growth was unchanged from the March survey at 2.8 percent. The participants continue to expect the central bank to cut the benchmark interest rate, which is the repo rate, to 1.4 percent in 3-months time.
They do not expect further easing in the policy rate in 12 months, but expect the central bank to raise it to 1.5 percent.
The survey, which is commissioned by the Sveriges Riksbank, was carried out among 255 organisations.
by RTT Staff Writer
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