RTTNews - Wednesday, the latest Inflation Expectations Survey for Sweden showed that inflation and gross domestic product in the one-year perspective tumbled since the previous survey, research agency TNS Prospera said. However, the economy's growth improved in the two-year perspective.

Inflation is however still believed to surpass the deflation line with a broad margin for all time periods, the report said. It added that a positive growth trend is also anticipated in a two year perspective.

According to the survey, inflation is expected to be at 0.7% in one year and at 1.4% for two years. GDP is forecast to fall 1.6% in first twelve months and may increase by 0.8% in two years.

In its April survey, the agency had seen inflation at 0.9% for one year and at 1.5% for two years, while GDP was forecast to fall 1.4% for one year and an increase by 0.6% for two years.

Survey participants also expects the Riksbank to hold its repo rate at 0.5% on a three-month horizon.

The latest survey showed that wages are expected to increase 2.3% in one year time, slightly slower than 2.4% increase predicted in the previous survey.

With regard to the country's currency, the agency said SEK is again believed to strengthen against EUR and USD.

TNS Prospera conducts the survey on behalf of Sveriges Riksbank, four times a year, aiming to track inflationary and wage increase expectations in Sweden among labour market parties, purchasing managers and money market players. The survey also maps expectations of future GDP-growth and repo rates, for money market players also the five-year government bond rate, the SEK/EUR and SEK/USD rates.

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