Europe: Economic projections and Swedish inflation in focus – Danske Bank

The research team at Danske Bank suggests that the focus for today’s session continues to be on Scandinavian inflation with release of the Swedish figure for April.

Key Quotes

“We estimate inflation took a leap up, above the Riksbank's estimate due to seasonality in the price of travel but this should be temporary.”

“The European Commission is set to publish its updated economic projection and we will keep an eye on its estimate of the structural unemployment rate (NAIRU), as this is highly important for when wage pressure will pick up. In our view, NAIRU in the periphery countries is likely to be revised lower as it is currently estimated to be higher than prior to the financial crisis despite the labour market reforms in these countries.”