Prices overall continue to increase at a high rate, shows a new report from the authority Statistics Sweden.
DO NOT MISS: Save SEK 1,557 – The expert: That’s where you buy the cheapest food
What became more expensive, what became cheaper?
It is mainly the prices of electricity, clothing and transport services that pushed prices up, while food and costs for leisure activities and culture fell slightly.
Inflation, i.e. price increases in March was 4.1 percent compared to last year. It is still high, but lower than the same month last year.
Reduction compared to February – in pace
It was also a much lower rate than in February this year, and lower than analysts expected.
– The inflation rate fell in March. Some goods are even cheaper than they were during the same period last year, says Mikael Nordinprice statistician at Statistics Sweden.
There are many ways to calculate inflation. If you remove the effects of mortgage rates, prices increased by 2.2 percent. It is still higher than the Riksbank’s target of 2 percent, but significantly lower than the February figure of 2.5 percent.
Expected increase was 2.6 percent. That’s why the economists are now rejoicing.
This affects your housing costs
The policy rate, which determines how much you have to pay in interest on housing loans in Sweden, was raised by the Riksbank when inflation increased to a record high in 2022 and continued in 2023.
The policy rate is the Riksbank’s only weapon to attack high inflation.
DO NOT MISS: The shock: The Riksbank’s horrendous interest rate may remain throughout the summer
That’s why the interest rate is so high
By raising the policy rate, it was hoped to force down consumption and slow down the economy, so that prices can stop rising so quickly. And it seems to have worked.
But after almost two years of increased interest rates, Swedes are poorer than they have been for a long time and the desire for relief is great.
139,000 children may receive back tax on the return – they are affected
The economist: “The Riksbank was irresponsible…”
But the inflation trend is broken, and now the banks want to see interest rate cuts to get household finances back on their feet.
– It would be directly irresponsible of the Riksbank not to lower the interest rate in May, says Avanza’s private economist Felicia Schoen to News24.
The next time the Riksbank may lower the interest rate is at the monetary policy meeting on 8 May. Then the policy rate could be lowered by 0.25 percentage points.
But it is not certain that there will be any reduction either then or in June. Nyheter24 has written about it before.
The shock: The Riksbank’s horrendous interest rate may remain throughout the summer
Read more about finance:
Therefore, your rent will be increased by thousands of kroner at the end of April