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Sweden Unemployment Rate 8.9% in Apr-24

- Sweden's unemployment rate in April 2024 dropped by 0.3pp to 8.9% but only reversed part of March's rise.
- The rate remains above the one-year average, indicating ongoing labour market challenges.

Sweden CPI Inflation 3.9% y-o-y (consensus 4.0%) in Apr-24

- Sweden's CPI inflation slowed again in April 2024 to 3.9% y-o-y, slightly undershooting market expectations to reach the lowest since January 2022.
- CPI inflation's downward trend has taken the rate significantly below the recent average amid weakening core price pressures.

Sweden Policy Rate 3.75% (consensus 3.75%) in May-24

• The Riksbank reduced the policy rate to 3.75%, motivated by inflation nearing the target amid a weakening economic outlook, with indications of further rate cuts if the favourable inflation outlook persists.
• Based on ongoing economic evaluations, future interest rate decisions will be cautiously managed, with potential additional rate reductions contingent on sustained positive inflation trends and economic stability.
• The central bank remains cautious about inflation risks related to external economic factors and the krona's volatility, ensuring a responsive and flexible monetary policy to navigate potential economic fluctuations effectively.

Sweden Unemployment Rate 9.2% (consensus 8.2%) in Mar-24

- Sweden's unemployment rate surged to 9.2% in Mar-24, surpassing the consensus estimate of 8.2%, marking the highest level since Jun-23.
- The current unemployment rate is 1.31 percentage points above the one-year average, signifying a significant deviation amid a worrying deterioration in the labour market.