Per Jansson: Responsible wage formation strengthens purchasing power and employment
Presentation “There are strong reasons to believe that the currently elevated inflation is transitory. In September it was therefore possible to provide some additional interest rate support to economic activity without taking too much risk in terms of inflation.” This was the message from Deputy Governor Per Jansson, when he discussed the motives for the Riksbank's most recent policy rate up at the Swedish National Mediation Office's conference on socioeconomic conditions for wage formation.
Date: 22/10/2025 13:05
Speaker: Deputy Governor Per Jansson
Place: National Mediation Office
Per Jansson, deputy governor.
The Riksbank's analysis indicates that inflation will continue to fall over the next six months. At the same time, the temporary reduction in VAT on food is expected to lead to noticeable variations in measured inflation in the coming years.
“It is reasonable that in monetary policy we ‘look through’ this type of temporary tax change, in the same way as I believe the social partners will do in wage formation. But for us at the Riksbank it will be important to monitor how households' and companies' expectations and behaviour are affected, so that fluctuations in inflation that are temporary to begin with do not become more permanent.”
He emphasised that the social partners had shown great responsibility during the period of excessive inflation.
“Real wages have been rising for some time and there are good prospects for further increases. Together with lower interest costs and fiscal policy measures, this is expected to clearly strengthen wage earners’ purchasing power going forward.”
Mr Jansson also emphasised that responsible wage formation has long played an important role in maintaining employment in Sweden.