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STOCKHOLM, May 15 (Reuters) - It's good that Sweden's
inflation rate slowed in April but monetary policy needs to stay
contractionary to ensure that price growth falls further and
stabilises at the central bank's 2% target, Riksbank Deputy
Governor Aino Bunge said on Monday.
"We should remember that inflation is still high and still
has some way to go to reach the target," Bunge said in a
statement.
Data from the statistics office showed on Monday that
inflation slowed more than expected in April, with underlying
inflation excluding energy prices at 8.4% on the year.
The Riksbank in April raised its policy rate to 3.50%
and flagged one more hike in June or September, but has fretted
that price pressure could prove sticky and force it to make
monetary policy tighter for longer.
(Reporting by Anna Ringstrom, editing by Terje Solsvik)
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