Swedish central bank's Thedeen says inflation risks have increased, pointing to Middle East conflict

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.