Inflation rate

Last updated: 2025-04-29

Inflation:Inflation erodes the purchasing power of money by increasing the overall price level in an economy. One of the most widely used methods for measuring the Inflation:inflation rate is the Consumer Price Index:Index (CPI). The CPI tracks the average prices of a specific basket of consumer goods and services that represent typical household spending.

Inflation:Inflation reduces the value of money by increasing the general price level in an economy. The most common method for measuring the Inflation:inflation rate is the Consumer Price Index:Index (CPI), which tracks the average prices of a basket of consumer goods and services representing household consumption.

In the 1970s, Inflation:inflation surged across the global economy, primarily due to the oil crisis. However, in the 1980s, many OECD:OECD countries adopted more conservative monetary policies, leading to a decline in Inflation:inflation rates. Since then, advanced economies have generally experienced low Inflation:inflation.

Sweden experienced a significant spike in Inflation:inflation in the late 1980s, driven by expansive economic policies funded by large Budget:budget deficits, generous wage increases, and repeated currency devaluations. By the early 1990s, the country faced a severe economic crisis that forced it to abandon its fixed exchange rate. During this period, several reforms were implemented, including a shift in monetary policy toward prioritizing price stability. The Swedish government assigned the Riksbank, the central bank, the responsibility of maintaining an Inflation:inflation rate of around two percent. Additionally, a reduction in nominal wage increases further contributed to lower Inflation:inflation rates.

Starting in 2022, many countries, including Sweden, experienced a significant rise in Inflation:inflation. This increase can be attributed to several factors: the lingering effects of the pandemic, which disrupted supply chains; the energy crisis caused by Russia’s war in Ukraine; rising production costs; and heightened demand driven by stimulus measures implemented during the pandemic. In response to rising Inflation:inflation, the central bank raised the interest rates, bringing Inflation:inflation down close to the Inflation:inflation target around two percent in 2024.causing the Inflation:inflation rate to decrease close to inflationsmålet around two percent in 2024.