STOCKHOLM, March 8 (Reuters) - Inflation is much too high and monetary policy needs to be tightened considerably, Riksbank First Deputy Governor Anna Breman said in the text of a speech published by the central bank on Wednesday.
"Monetary policy ... needs to be substantially tightened for a significant period in order for inflation not only to come down to two percent but also to thereafter remain at a low and stable level," Breman said.
At its most recent meeting the Riksbank raised the policy rate by a half percentage-point to 3.0% and said it would continue to tighten policy, with further hikes to come in the spring. It forecast the rate would peak at around 3.33%.
But inflation in January was worse than expected, excluding volatile energy prices, and indications are that underlying price pressure has continued to pick up in February.
Figures from Matpriskollen - a consumer site that calculates food price changes - showed that food prices rose by 2.1% in February, a record for a single month.
Food makes up around 17% of the basket used to calculate inflation.
Breman said the Riksbank needed to see a significant fall in inflation before it could end its rate-hike cycle.
"It's going to be tough for many people in the short term," she said.
Official inflation figures for February are due on March 15. Underlying inflation in was 8.7% in January.
