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Swedish inflation nears five-year high

Published måndag 12 november 2007 kl 10.25

Sweden’s annual inflation rate rose to 2.7 percent in October, the highest rate since March 2003.

October’s 0.5 percent increase on September, is the second consecutive month inflation exceeded Sweden’s central bank’s 2.0 percent target.

According to Statistics Sweden, upward pressure on food prices, clothing and housing contributed to the increase the consumer price index.

In a bid to cool inflationary pressures in the Swedish economy, currently experiencing robust economic growth, the central bank, the Riksbank, recently hiked its key interest rate to 4.0 percent, the highest level since December 2002.

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