MNI BRIEF: High Inflation Transitory - Riksbank's Jansson

Swedish inflation will fall over the next six months, Riksbank Deputy Governor Per Jansson said on Wednesday, adding that measured inflation will exhibit "noticeable variation" after a temporary reduction in VAT on food.

"There are strong reasons to believe that the currently elevated inflation is transitory," he said in a speech. September inflation on the target CPIF measure was 3.1%, above the Riksbank's goal of 2%. The policy rate was cut to 1.75% in its September meeting and its guidance and its rate forecast suggested it wouuld remain at this level "for some time to come".

Jansson added that he expects the prospect for further wage increases, together with lower interest costs and fiscal policy measures, to strengthen wage earners’ purchasing power. (see MNI INTERVIEW: Riksbank Head -Equal Chance Next Move Cut, Hike )