Reuters reports that data, published by the statistics office (SCB), showed that headline inflation in Sweden ticked up marginally in July, though price pressure is unlikely to affect central bank policy when rate-setters return from their summer recess.

Consumer prices in Sweden, measured with a fixed interest rate, rose 0.3 percent in July from the previous month and were up 1.7 percent from the same month last year. Higher electricity prices had the biggest impact on inflation. Stripping out energy prices, inflation was 0.5%. The Riksbank targets 2% headline inflation.

With Sweden's economy already back to pre-pandemic levels, the Riksbank has called time on its bond purchases, which are due to stop at the end of the year.

Rate hikes, however, look to be years off, though some policymakers are eyeing possible tightening toward the end of the current forecast horizon, which stretches to the third quarter of 2024.