Sweden's Inflation Surprise May Not Be Enough for Riksbank

Sweden's inflation rate took an unexpected turn in August, easing to 0.7% according to the preferred CPIF gauge.

This drop was more pronounced than economists had forecasted at 1.0%, but it may not be enough to ease concerns for the Riksbank, Sweden's central bank.

Despite the softer inflation print, the Swedish currency remains weak against the euro, down by about 3% this year.

This weakness in the krona could lead to higher import costs and subsequently push up consumer prices over time.