Sweden’s central bank faces a “pretty serious problem” in tackling below-target inflation, Deputy Governor Per Jansson told Bloomberg.

“It’s worrisome that we have such low inflation,” Jansson said. “Should long-term inflation expectations deviate” from the target, “it will be too late,” he said.

The next set of consumer price data will be very important in guiding the Riksbank’s decision when the board meets to discuss interest rates in July, Jansson told reporters in Stockholm today, Bloomberg reports.

Headline consumer prices declined an annual 0.04 percent in April after dropping 0.6 percent the previous month, Statistics Sweden said May 13. The Riksbank’s target is to keep inflation around 2 percent.

Sweden’s economy contracted in the first quarter as imports surged, masking a gain in consumer spending and a recovery in exports. Gross domestic product shrank 0.1 percent in the three months through March, Statistics Sweden said.