Prices in Sweden are expected to increase as as the impact of higher food and energy prices trickles through the economy, according to a survey by TNS Prospera commissioned by the Stockholm-based central bank.

Money market participants, purchasing managers and employers now expect that inflation will average 2.5 percent in one year and 2.5 percent in two years, Bloomberg wrote.

Last month Sweden's central bank hiked its key interest rate for the fifth time since July, a widely anticipated move, bringing it to 1.5 percent.

“Unemployment has fallen slightly faster than was expected the monetary policy meeting in December and inflation has increased somewhat as a result of higher energy and commodity prices,” the Riksbank said.

The Swedish government last week raised its economic growth forecast for this year and said unemployment would shrink significantly, following the recent publication of strong statistics.