MNI BRIEF: Riksbank Survey - Prices Rising But May Have Peaked

The Riksbank's business survey showed that firms were planning to raise prices further over the next 12 months and faster than normal, but it did found some signs that inflation may have peaked, with anticipated price rises less than last year.

Economic activity was patchy, with manufacturing firms seeing orders increasing over the past three months but retailers coming under pressure as household finances have become stretched. "We had expected to begin to see signs of a turnaround in underlying inflation now. Instead, it has moved in the wrong direction ... (but) there is good hope that the price increases will be curbed and that inflation will fall quickly later this year," Deputy Governor Martin Floden said Thursday.

The debate has been over whether the RIksbank will opt for a 25 or a 50 basis point rate rise at its April meeting and Floden left the question open, saying they were waiting for further data.