On the other hand, there is rampant inflation in Swedish asset prices, residential property in particular.
Note that inflation targeting has been considered as a modern, scientifically backed approach to monetary policy by central bankers and academics in many countries. The problem is that the consumer price index is a wrong measure of inflation as it does not reflect property prices, the property market being vital for the economic cycle.
I believe a monetary policy that disregards property price inflation (deflation) is insane.
Will Sweden eventually end up like Japan? If the Riksbank would inflate the property boom enough then the scenario of credit deflation and a protracted economic slump is quite possible in the future. (Not sure if it's avoidable at the present time.)