Despite the fact that inflation and interest rates have been rising for a while, Magnus Hjelmér, everyday economist at Icabanken, believes that the seriousness has not yet sunk in for many households.
“Major changes in behavior are needed now to break the old usual patterns.” I still think we have a long way to go there, he says.
A sign of this is that Swedes are still booking holidays abroad for the summer. For example, Apollo has recently told TT that “trips are being booked in droves”, more than before the pandemic.
— For me, it should be quite unthinkable and something you really need to think about. I don’t think we are making big enough sacrifices, if we were to drastically reduce consumption, prices would fall, says Magnus Hjelmér.
Using the tax refund
TT: How come people can still afford vacations?
— You probably empty savings accounts and any buffer accounts. As an economist, that behavior baffles. You might take the tax refund and the electricity subsidy money. But it is by no means certain that the electricity price crisis is over, we are facing a similar situation next winter, he says and continues:
— We have had a low interest rate environment and real wage increases for many years, which has built a larger middle class. It is difficult to get used to that consumption.
Not since 1951 have food prices risen this quickly, according to Statistics Norway. With inflation comes interest rate increases. When it comes to food prices, we need to think about how we shop and cook, according to Magnus Hjelmér.
— It will be important to really try to think smart now. It’s important to take advantage of things that may seem small, but which can have big effects in the long run, says Magnus Hjelmér.
Cook flexibly
One such is eating what is in the freezer. According to Magnus Hjelmér, an average family with children has around SEK 1,500 to 2,000 worth of food in the freezer.
It is also possible to save money by reducing food waste.
— Then, of course, it is necessary to shop for offers. Maybe it’s time to remove the “no thanks to advertising” sign from the mailbox and start looking in the flyers and really hunt for low prices, he says.
It’s about shopping around and buying where the price is lowest. But also about adapting your cooking.
— You have to be flexible and cook more based on the offers that are available. It may not always be the falu sausage that is the cheapest either, but there may be vegetarian options. It is important to cook food that is in season.
Many economists expect that inflation will begin to decline before the summer. However, this does not mean that everything will be cheaper again.
— Even if inflation goes down, other large cost items will linger. It is important not only to focus on the economy until the summer, but also to think about what happens after the summer, says Magnus Hjelmér.