STOCKHOLM, April 22 (Reuters) - Swedish central bank Governor Erik Thedeen said on Wednesday the risk has risen somewhat that inflation could be higher than the Riksbank expected a few weeks ago.
Swedish Central Bank Warns of Higher Inflation Risks Linked to Middle East Conflict
Riksbank Governor Highlights Inflation Concerns Amid Global Tensions
Rising Inflation Risks Noted by Governor Erik Thedeen
STOCKHOLM, April 22 (Reuters) - Swedish central bank Governor Erik Thedeen said on Wednesday the risk has risen somewhat that inflation could be higher than the Riksbank expected a few weeks ago.
Impact of Middle East Conflict on Global Supply Chains
Thedeen said in a statement the Middle East war is causing a negative supply disruption to the world economy, in turn increasing inflationary pressures.
Energy Prices and Inflationary Pressures
“Even if a formal agreement on the opening of the Strait of Hormuz were to materialise relatively soon, inflationary pressures and high energy prices will not level off at the stroke of a pen," he said.
Potential Policy Response from the Riksbank
If there is an increased risk of high inflation that could deviate permanently from the Riksbank's 2% target, the bank may need to act to prevent it from happening, he said.
(Reporting by Anna Ringstrom, editing by Louise Rasmussen)
