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Consumer Confidence Growing

Published fredag 27 juli 2007 kl 11.41

A report from the National Institute of Economic Research reveals that Swedish consumers are growing in confidence, and businesses are finding it harder to hire staff.

According to the Reuters news agency, the report signifies a possible rise in inflation is on the way. It currently hovers just below the 2% mark.

Sweden’s central bank, the Riksbank, is widely expected to raise interest rates again soon after an increase to 3.5 percent last month. An economist at Nordea, the Stockholm-based Nordic banking group, says that the staff shortages some companies are experiencing could be seen as a sign of increasing inflation.

The news comes as it is announced that retail sales in Sweden went up 1.9 percent in June from May for a year-on-year rise of 8.5 percent - well above the annual increase forecast in a Reuters survey.

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