stockholm dec 14 reuters  headline inflation in sweden hit its fastest pace in more than 25 years in november figures published on tuesday showed testing the resolve of the central bank to wait out what it sees as a temporary peak in price pressure ratesetters believe bottlenecks created as economies recover from the coronavirus pandemic and energy prices are behind the surge in inflation rather than a longterm shift in factors such as wages read more the riksbank expects inflation to ease back next year dropping well below the target again the debate on how long a transitory period of inflation is has started in sweden as well putting pressure on the riksbank to take action nordea economist torbjorn isaksson said consumer prices in sweden measured with a fixed interest rate rose 05 in november from the previous month and were up 36 from the same month last year the statistics office scb said higher electricity prices added 04 percentage points to the annual figure excluding volatile energy prices inflation was 19 the central bank targets 2 inflation it had forecast headline inflation at 317 against analysts 34 central banks around the globe are grappling with how quickly to respond to eyepopping inflation numbers and price pressures that have proved stickier than many had expected a number of central banks have signalled policy tightening or have already hiked rates read more at its most recent meeting the riksbank held policy broadly unchanged though it pencilled in a rate hike in late 2024 read more however the level of uncertainty is high several ratesetters saw room for the riksbanks balance sheet to shrink next year with others leaving the door open for faster rate hikes should inflation prove persistent markets expect a rate hike from the current 0 sometime in 2023 reporting by simon johnson editing by niklas pollard and ed osmond