Inflation falls – so households are affected

Monday’s inflation announcement of 2.3 percent is the lowest reading since July 2021. In November, inflation was 3.6 percent.

Despite the listing, the figure was higher than expected, according to Shoka Åhrman.

– Expected was 2.1 percent. But we are on the same path and moving.

Positive decline

That Sweden and other countries see a decline in the economy is positive. However, it will not mean any major noticeable changes for the common man, yet.

– We cannot run in advance and assume that it will have a huge effect here and now. But in the coming six months, we will likely see the Riksbank lower the interest rate. If we get inflation and the price picture down, it will of course have an effect on the economy and the Swedish economy, says Åhrman.

Several uncertainty factors

Although an improvement is predicted, there are still a number of uncertainty factors that risk affecting a continued decline in inflation.

– The uncertainty factors are what started this rise. We have had wars in our surrounding world and we have had energy crises. They are still the ones who could change the trend.

In addition to that, the Swedish krona has been weak for a longer period.

– Even though we have seen a strengthening, it affects the price picture in Sweden.

Something else that has affected the price picture, and may do so in the future, are the prices of food.

– They have affected households to a great extent. There, extreme weather is another factor that can affect harvests and thus also prices.

Low interest rates may linger

When inflation has now ended up at a slightly lower level, many wonder when mortgage interest rates will follow downwards. But it may take a while, Åhrman predicts.

– Probably during the year we as mortgage borrowers will have to make do with relatively low reductions. Then it can eventually move at a fast pace. Here and now we will probably get a reduction in mortgage interest rates, perhaps a different price picture in the grocery stores. But that we end up at the same levels as 2022, we are not there yet. You need to have that with you.

She continues:

– Above all, the decline can hit our wallets in our later than expected.

When will the Riksbank lower the interest rate, do you think?

– Hopefully in February.