Inflation according to CPIF has fallen to 1.3 percent in June and is thus below the Riksbank’s inflation target of two percent. It is the first time since September 2021. Claes Hemberg describes the low inflation as expected.
– But it is not certain that it will be that good anyway. There may be more expensive prices in the autumn and we will have to live with the old expensive prices we have received in recent years, he says.
“We have to get used to more unequal prices”
Many households have been under severe financial pressure after the last few years, when costs have risen, and may feel apprehensive about starting to spend.
– I can think that those who are worried may be right, because there is a risk that prices will start to rise again. I think we have to get used to more unequal prices. You may have to think about how you spend and not always buy entrecote. There are cheaper things in the grocery store too.
Next year, the Swedish economy looks like it will catch up and then the economy will start to grow again. At the same time, there are also risks if inflation becomes too low or if there is deflation and goods start to fall in price.
– The best thing for both households and companies is even prices. Then we can plan our lives more easily. If prices fall and go backwards, people start to stop consuming and instead maybe wait to buy a sofa because they think it will be cheaper in the future.
Trade with the rest of the world affects prices
In the new economy, Claes Hemberg believes that prices vary because we trade so much with the outside world.
– China, for example, has had deflation and falling prices for several years. You might think that’s positive, but if, for example, they export electric cars cheaper to Europe, it could mean that 13 million automotive jobs are threatened even if clothes become cheaper to buy.
As a private person, it can be a good idea to have some extra money in your wallet.
– There will be brighter times, absolutely, but it won’t come quickly. It will take time before we recognize ourselves and learn the new economy, says Claes Hemberg.