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Sweden’s inflation rate rises to highest level in 28 years

Sweden’s inflation rate rises to highest level in 28 years

Sweden’s inflation rate rose to 3.6 percent in November, up from 3.1 percent in October. As the Statistics Sweden reports, the figure is higher than it was respected.

The most recent inflation rate largely driven by an increase in electricity and fuel prices. The coronavirus hit economy hard, and the inflation rate demonstrates it clearly. On Tuesday, Statistics Sweden has released a fresh report, which called the inflation rate the highest one in almost three decades.

In other words, rising energy prices contributed to the highest inflation rate since December 1993.

The 3.6 percent inflation rate is measured according to CPIF (Consumer Price Index with fixed interest), which subtracts the effects from changes to mortgage rates from the standard CPI. It’s a key metric used by Sweden’s Central Bank for its inflation target.

Over almost three decades, Sweden has long had a relatively low rate of inflation, and the Central Bank introduced negative interest rates in 2015 to bring it up to its target of two percent.

In its fresh report, Statistics Sweden noted that prices also rose last month on package holidays, food, non-alcoholic beverages, restaurant and hotel services and miscellaneous goods and services. The CPIF inflation rate excluding energy rose from 1.8 to 1.9 percent in November.

The price of clothes also rose in November, but that could be linked to the usual seasonal changes, The Local Sweden reports.

Mobile phone, audio-, visual- and photo equipment prices fell last month, somewhat offsetting the rise in other consumer goods.