Inflation in Sweden picked up in November, data from the Statistics Office showed on Wednesday, casting a shadow over the central bank's plans to slow the pace of rate hikes in the coming months.

Headline inflation was 9.5% compared to the same month in 2021. Compared with October, prices rose 0.7%.

Excluding volatile energy prices, inflation was 8.0% on the year and 0.2% on the month.

Headline inflation was in line with analysts' forecasts. Underlying inflation had been seen at 8.1% and 0.3% respectively.

The Riksbank had forecast for headline inflation of 8.8% and underlying inflation of 8.1%. Central banks around the world have jacked up interest rates over the last year amid soaring prices.

The Riksbank raised borrowing costs by three-quarters of a percentage point in November taking the policy rate to 2.50%.

But policy-makers now hope that prices have just about peaked and that the heavy-lifting from interest rate hikes is nearly done.

At its most recent meeting, the Riksbank said it expects to raise rates a bit more, forecasting a peak at around 2.8% early next year. If inflation continues to pick up, rate-setters may need to take a more aggressive stance. (Reporting by Simon Johnson; editing by Niklas Pollard)