Energy price shocks had profound effects on Sweden's consumption patterns
News, Staff memo In recent years, spending by individuals in Sweden has fluctuated a lot. Since 2022 these fluctuations can be linked to the large shock in the price of energy that followed cuts in the inflow of energy from Russia to Europe in the aftermath of the Ukraine war. This is shown in a recent analysis by the Riksbank's Nicoletta Batini.
Several goods and services were affected, but the impact of the 2022-2023 energy shock was particularly strong on durable consumer goods, that is goods that have a long lifespan, such as appliances, electronics, tools, and furniture.
During 2024, consumption showed tentative signs of recovery, but the study underlines the persistent negative influence of energy price shocks on total consumption and its various components in the last quarter of 2024.