Inflation is falling and is now at 1.2 percent – good news for many.
But economists are now raising a warning finger about the low numbers.
– The warning bells are starting to ring, says Robert Bergqvist, senior economist at SEB.
Many now believe that the Riksbank should strike with a double reduction on September 25 after inflation fell to 1.2 percent. But not Robert Bergqvist, he believes that the warning bells are starting to ring for inflation to become permanently low.
– The fact that we are at 1.2 percent depends a lot on the fact that you have falling energy prices. The Riksbank must be very careful about stressing itself out regarding energy prices. I don’t think they want to go back to how it was before the pandemic. At that time, inflation was almost always below 2 percent. They would like to have inflation as close to 2 percent as possible, he says.
The money lasts longer
Robert Bergqvist is clear that it is more or less a positive problem that inflation is so low, but that it must not remain at such levels for too long.
– That the expectations have fallen below the target in combination with the fact that we have had the outcome below the target, that’s when these warning lights start to come on, he says.
But the news is mostly positive, isn’t it?
– From a private financial perspective, it is not a problem, we get more purchasing power. This is positive for private individuals. The money we receive every month will last longer. It also increases the pressure for the Riksbank to lower the interest rate quickly.