Sweden’s inflation reaches its highest level in 30 years

Sweden's inflation reaches its highest level in 30 years

STOCKHOLM, Oct. 13 (Xinhua) — Inflation continues to hit records in Sweden, with 12-month CPIF (Consumer Price Index with Fixed Interest) inflation reaching 9.7 percent in September, the highest level in three decades, Statistics Sweden said on Thursday.

“Higher electricity prices and higher prices for food and non-alcoholic beverages contributed to the high inflation in September,” said Caroline Neander, price statistician, in a press release.

Electricity prices have increased by 54.2 percent and food and non-alcoholic beverages by 16.1 percent over the past 12 months.

Prices also rose for repair and maintenance of homes, furnishings and household equipment, restaurant visits, accommodation services and various goods and services.

According to analysts, the fight against rising inflation is far from over.

– Few believe it has reached a peak yet, says Alexander Noren, economic commentator on SVT.

In order to hold back inflation to its 2 percent target, the Riksbank, the country’s central bank, has carried out a series of key interest rate increases to today’s 1.75 percent.

The combination of inflation and rising interest rates will lead to stagnation, the Economic Institute (KI) said in a report released late last month.

However, inflation may reach a peak at the beginning of 2023, said Frida Bratt, savings economist at Nordnet bank, to SVT on Thursday.

– The key interest rate hikes will have had an effect by then and since the economy is also stagnating, the Swedes will be penniless, said Bratt.

Source: sn.dk

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