DCSIMG

Swedish CPI preview and index-linked bonds

Published date: 10 Aug 2012 | Read full report | Disclaimer
Cost electricity

We expect that CPI will decrease by 0.3% in July corresponding to a y/y inflation rate of 0.7%.

Record low electricity prices are holding Swedish inflation down while food prices are continuing to rise. Although the strong Swedish Krona is a force for lower inflation, we fail to see any obvious impact on the shape of the real rate yield curve.

Given the ultra-flat Swedish yield curve, both compared to international and nominal curves, we like short-term  linkers better than long term.

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