(Adds detail, background)
STOCKHOLM, May 15 (Reuters) - Consumer prices in Sweden,
measured with a fixed interest rate, rose 0.2% in April from the
previous month and were up a smaller-than-expected 7.6% from the
same month last year, the statistics office (SCB) said on
Monday.
The central bank targets 2 percent CPIF inflation.
Stripping out volatile energy prices - a measure the central
bank is looking closely at - underlying inflation was 8.4% on
the year.
For headline inflation, analysts had forecast 7.9%, the
same as the Riksbank. Underlying inflation was seen by analysts
at 8.7% and at 8.6% by the Riksbank.
At the end of April, the Riksbank raised rates by a
half-percentage-point to 3.50%. Another quarter-point hike is
expected in June or September, before the tightening cycle comes
to an end.
However, rate-setters said they was ready to rethink
policy if inflation proves stickier than currently expected.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Swedish rates and inflation: ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Simon Johnson)
Messaging: simon.c.johnson.reuters.com@reuters.net))
