Swedish Inflation Slows, Reinforcing Interest-Rate Optimism.

Sweden's core inflation has reached its lowest level since May of the previous year, indicating a positive outlook on price increases after the country's central bank ended its 18-month campaign of interest-rate hikes. Prices, excluding energy and interest-rate changes, rose by 5.4% compared to the previous year, which was lower than the expected 5.9%. This continuous slowdown in underlying inflation suggests that price increases may approach the Riksbank's 2% target next year, potentially leading to earlier interest-rate cuts and aiding an economy struggling with higher costs. The Swedish government has refrained from implementing stimulus measures to avoid further price increases until inflation normalizes. [Extracted from the article]