Swedish Near-Term Inflation Expectations Fall as Tax Cuts Loom

Expectations for Sweden’s inflation rate a year from now decreased sharply in a quarterly survey by the pollster Origo as a looming cut to value-added tax on food pulled down forecasts.

Results of the poll, commissioned by the Riksbank and published Wednesday, showed that labor market parties, purchasing managers and money market players see annual price increases with a fixed interest rate, the Riksbank’s target measure, at 1.6% one year from now, compared with 2.1% in September.

The Swedish government, which faces a general election next September, plans the most expansive budget in years for 2026, including a ...