I need some help with my outside temp sensor on my 2004 V70

When I start, the engine the outside temp reads correctly. Hovever, as the engine warms up the temp indicator starts creeping up to about 56F while the outside temp is about 25 degrees lower.

Doses anyone know what could be the problem? Does the outisde temp sensor have anything to do with the cabin teperature because it feels like I can not get the car warm enough while I feel the heat seems to be working fine?

Thanks!