Sweden's Price Pressures Likely To Remain Low

(RTTNews) - Price pressures in Sweden is likely to remain low, the Riksbank's business survey showed Tuesday.

Swedish companies said they find it difficult to raise prices. Only a small percentage of companies recently raised their prices or plan to do so in the near term.

Many retail companies are planning for price increases below two percent, while the manufacturing companies' plans are even more modest.

Further, companies said there are still no clear signs that a rapid recovery is underway, despite increases in orders and sales. Nonetheless, companies interviewed in January noted that macroeconomic risks have weakened and the companies are therefore hopeful about developments in the period ahead.

Further, they expect to see a stronger upturn in economic activity towards the summer.

Companies said the need for labor is still limited and there is ample spare capacity. This is expected to hold down employment growth in the period immediately ahead.