Higher price growth than expected reported in Sweden

Inflation in June amounted to 8.5% in Sweden. That is a level that was higher than expected and the highest inflation level since July 1991.

Swedish inflation amounted to 7.2% in May. It spiked sharply in June.

“The price increase will be felt in households’ budgets,” chief analyst Torbjörn Isaksson in Nordea stated.

“There are tough times ahead,” he added.

According to Isaksson, the central bank will most likely move forward quickly with two interest rate increases of 0.5 percentage points. According to him, the first increase will take place already in September.

“For those who have loans, interest expenses are also increasing quite quickly now,” he said.

Record level of inflation

The level of inflation in Sweden has not been higher in over 30 years.

Rising prices of food, electricity, and fuel were the factors that affected inflation the most. The price of coffee, for example, has risen by 50% since June 2021.

“Price increases of furniture, hotel and restaurant visits, leisure and cultural services, and personal hygiene also affected inflation in June,” the Swedish statistical agency Statistics Sweden wrote in a press release.

Finland is also experiencing high inflation. In June, inflation in the country was 7.8%, the highest level since 1984.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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