Riksbank's Bergstroem worries about inflation

SWEDEN - Developments in Swedish prices and wages leave a lot to be desired, said Villy Bergstroem, a deputy governor of the Riksbank, Sweden's central bank, in a speech.

"It is not mumbo jumbo that a productivity level of around 1.5% and an inflation target of 2% are incompatible with wage rises of 4%," Bergstroem said.

He said the Riksbank's assessment of wage developments in the coming two years is around 4%. "I.e., a level that is not compatible with the inflation target, unless productivit