Swedish prices rose 11.5 percent in November – E24

Inflation in Sweden rose to 11.5 percent in November, compared to the same month a year earlier.

This is shown by figures released by Statistics Sweden (SCB).

In October, the price increase was 10.9 percent.

– Higher electricity prices contributed to the inflation rate in November, says Carl Martinson at the Savings and Credit Bank.

Electricity prices in Sweden increased by 16.8 percent from October to November.

In addition, the prices of groceries such as soft drinks, milk, cheese, and eggs are on the rise. Transportation prices also rose, with fuel prices accounting for most of the price increase.

CPIF core inflation, which ignores changes in home interest rates, rose to 9.5 percent, from 9.3 in the previous month. This is the Riksbank’s preferred target for price growth.

If you also remove electricity prices, inflation was 8.0 percent. By comparison, this inflation rate was 7.9 percent in October.

US interest rate notice

The Norges Bank will announce the interest rate on Thursday, but already this evening it will know what the US central bank, the Federal Reserve (Fed), will do.

The US Central Bank is in the middle of an interest rate meeting as they discuss the message they will deliver later today to silence rising inflation in the country.

Central Bank Governor Jerome Powell is expected to announce another rate hike. He has reiterated many times that he will do whatever it takes to beat the price hike. Economists asked by Bloomberg believe that this time the central bank will settle for a double jump in interest rates of 0.5 percentage points.

At the beginning of November, the US central bank raised interest rates by 0.75 percentage points. This was the fourth time in a row that the central bank came out with such a sharp jump in interest rates in the face of strong rate growth in the country.

After this increase, the interest rate range in the US is between 3.75 – 4.0 percent. It is the highest since early 2008.

50/50 in Norway

Price growth in Norway eased to 6.5 per cent in November. This means that inflation in this country is still at a high level, but it is much lower than last month.

In Norway, the Norwegian Central Bank is expected to raise interest rates by 0.25 percentage points on Thursday in order to reduce price hikes in society.

There is tension around the interest rate path, and we imagine Norway will adjust to the downside. Core inflation rose more than expected by the Bank of Norway. In any case, growth prospects are quite negative for the Norwegian economy, and recessionary lights are starting to flash, Handelsbanken’s Sarah Midtgaard told E24 on Sunday.

– But everything indicates that the price pressure in the Norwegian economy is on the way down.

Handelsbanken predicts that there is a 50 per cent chance that there will be another hike in interest rates in the next quarter. Whether it goes up for one quarter will depend on the data. In this case, the prime interest rate would end at 3 percent.