Sweden's subdued inflation gives Riksbank rate hike reprieve

Key facts

• Sweden's core inflation rate increased at a slower pace than expected in May.
• The Riksbank may hold off on borrowing-cost increases.

Sweden's core inflation rate increased at a slower pace than the Riksbank had expected in May. This development provides the central bank with room to hold off on borrowing-cost increases. The decision comes in the wake of the Iran war, though the direct link to that event is not detailed in the provided text.