Sveriges Riksbank Inflation Report, No. 3 2006

Sweden's central bank, the Sveriges Riksbank, published its Third Inflation Report for 2006 on 26 October. According to the report, over the coming years, UND1X inflation is expected to continue to rise as a result of increasing costs as economic activity improves.

The forecast is based on the assumption that the repo rate will be gradually increased. Inflation is expected to be moderate, despite good growth in economic activity. This is due to favourable supply conditions, such as a rapid

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