Riksbank deputy open to scrapping CPI as target variable

Quirks of Swedish CPI make it awkward for use as monetary policy target variable

dir-pressbild-per-jansson-136x190-140918
Per Jansson. Photo: Riksbank

Sweden should consider targeting a new measure of inflation, as the country's unusual approach to measuring CPI risks undermining trust in Sveriges Riksbank, deputy governor Per Jansson said today (December 3).

Unlike most other countries, CPI in Sweden includes the interest payments made by home owners with mortgages. This means a cut in interest rates puts immediate downward pressure on inflation, and prices will only move in the expected direction over a longer horizon, Jansson said.

This has

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.