STOCKHOLM—Sweden’s central bank on Thursday raised a key interest rate from zero to 0.25 percent, citing the highest inflation level since the 1990s.
Riksbanken said there had been “unusually large fluctuations in inflation in Sweden” and the rise last year “was largely due to rapid increases in energy prices.” The Consumer Price Index for March was at 6.1 percent.
“Since the turn of the year, inflation excluding energy has also risen rapidly and has been significantly higher than the Riksbank’s forecast in February,” the central bank said in a statement. “The outcomes indicate that the upturn is now broad and prices of goods and food as well as services are rising unusually quickly.”
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