Published by Global Banking & Finance Review®
Posted on April 22, 2026
1 min readLast updated: April 22, 2026
Add as preferred source on GoogleRiksbank Governor Erik Thedeen flagged a higher-than-expected inflation risk driven by supply disruptions from the Middle East conflict, stressing that even if the Strait of Hormuz reopens soon, inflation and energy prices won’t ease instantly, and the bank may act to prevent inflation from straying
STOCKHOLM, April 22 (Reuters) - Swedish central bank Governor Erik Thedeen said on Wednesday the risk has risen somewhat that inflation could be higher than the Riksbank expected a few weeks ago.
Thedeen said in a statement the Middle East war is causing a negative supply disruption to the world economy, in turn increasing inflationary pressures.
“Even if a formal agreement on the opening of the Strait of Hormuz were to materialise relatively soon, inflationary pressures and high energy prices will not level off at the stroke of a pen," he said.
If there is an increased risk of high inflation that could deviate permanently from the Riksbank's 2% target, the bank may need to act to prevent it from happening, he said.
(Reporting by Anna Ringstrom, editing by Louise Rasmussen)
The bank highlights negative supply disruptions from the Middle East conflict, which amplify inflationary pressures.
Disruptions in the region are driving up global energy prices and supply costs, potentially increasing Swedish inflation.
The Riksbank may intervene to steer inflation back to its 2% target if risks of persistently high inflation rise.
According to the central bank governor, inflationary pressures and high energy prices will not subside instantly, even with an agreement.
Explore more articles in the Finance category
