The governor of the Riksbank is now warning that long-term inflation is more costly for households than interest rate increases in a speech he gave today. And he emphasizes that inflation must come down before the end of the year. – In various calculations, I have tried to show that inflation is very costly and that it affects households very widely, especially those with low incomes, who consume most of their salary on, for example, food. So therefore the fight against inflation is not just something theoretical but central to all wage earners in Sweden, says Erik Thedéen in connection with a speech at Nordea’s Stockholm office today. How should households then think? – These are quite tough times now and you have to respect that. It is both the case that you get less for your money when inflation is high and that we raise the interest rate hits those who have loans. But one must also think that it is good for households if we succeed in bringing down inflation, because otherwise we will have a much worse economic development. When will we get inflation down? – Our forecasts say that it will go down quite quickly this year and maybe come down to two percent in 2024. The problem is that we and others have made mistakes in our inflation assessments, so here it really matters that it reverses and it has not yet done so . So we now have a journey ahead of us to really succeed in bringing down inflation, says Erik Thedéen See parts of the interview with the governor of the Riksbank in the player above.
t4-general
The Governor of the Riksbank: “These are rather tough times now”
