Sweden’s Accelerating Inflation Hits Bets on Rate Cut in August

Sweden’s inflation rate accelerated more than expected last month, knocking expectations that the central bank will cut interest rates in August to support the struggling economy.

CPIF, a measure of inflation with a fixed interest rate, sped up to 2.9% in June from 2.3% in May, according to a preliminary release from Statistics Sweden on Monday. The median forecast in a Bloomberg survey of analysts was 2.5% while the Riksbank’s projection stood at 2.4%.