Jansson at the Riksdag Committee on Finance: We are safeguarding the inflation target
The high inflation creates problems. It erodes purchasing power – especially for the least well-off – and makes it difficult for both households and businesses to plan their finances. Therefore, the Riksbank, which has been given the task by the Riksdag of keeping inflation low and stable, must now act to bring inflation down. Low and stable inflation provides a foundation for good economic development. This was the message from Governor Stefan Ingves and Deputy Governor Per Jansson when they took part in a hearing on current monetary policy at the Riksdag Committee on Finance.
Date: 20/10/2022 09:00
Speaker: Deputy Governor Per Jansson
The inflation target is worth defending
Per Jansson: “We will bring inflation down to the target level - and this is a promise, not a forecast.” However, he emphasized that there are better and worse paths to get there. “The best scenario would be if we can return inflation to the target with relatively cautious rate increases. This is also contained in our forecast, where the policy rate peaks at 2.5 per cent. But a lot also depends on the support for this development in price-setting and wage formation and the formulation of fiscal policy."
The inflation target has contributed to a good economic development in Sweden, he continued and pointed out, among other things, that real wages have increased more than three times faster per year since the inflation target was introduced in 1995, compared with the period 1970-1994. “The inflation target is worth defending, and I hope that we will cooperate to do so.”