Headline inflation slows to 4.7 from 6.4 in August
Bigger fall than expected by Riksbank
Central bank still seen hiking next week, maybe also in November

STOCKHOLM, Sept 14 Reuters The pace of headline Swedish inflation slowed more than expected in August, official data showed on Thursday, but analysts believe it will not be enough to prevent the central bank raising its policy interest rate next week.

The consumer price index measured with a fixed interest rate CPIF fell 0.1 in August from the previous month but was up 4.7 from the same month last year, Statistics Sweden SCB said.

The central bank targets 2 CPIF inflation.

Excluding volatile energy costs, inflation was 7.2, slowing from 8.0 the previous month and against a forecast of 6.9 from the Riksbank.

With the labour market still very tight and policymakers concerned about underlying price pressures and the weakness of the krona crown, the Riksbank will still implement a further 25 basis point rate hike next week, Andrew Kenningham, chief Europe economist at Capital Economics, said in a client note.

The statistics office said lower electricity, food and package holiday prices contributed to the slowdown in headline inflation.

The Riksbank had forecast headline inflation at 4.8 on an annual basis. Analysts expected it to be 4.9.

Headline inflation was 6.4 in July.

Raising the policy rate to 3.75 in June, the Riksbank said it expected to tighten policy at least one more time this year. It announces its…