Sweden’s inflation rate rose to 3.6 percent in November, up from 3.1 percent in October.
This was higher than expected, and was largely driven by an increase in electricity and fuel prices, according to a fresh report by Sweden’s national number crunchers Statistics Sweden. It was also the highest inflation rate in almost three decades.
“Rising energy prices contributed to the highest inflation rate since December 1993,” said Mikael Nordin, a statistician at Statistics Sweden, in a statement on Tuesday.
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The 3.6 percent inflation rate is measured according to CPIF (Consumer Price Index with fixed interest),which subtracts the effects from changes to mortgage rates from the standard CPI. It’s a key metric used by Sweden’s Central Bank for its inflation target.
Before this, Sweden has long had a relatively low rate of inflation, and the Central Bank introduced negative interest rates in 2015 to bring it up to its target of two percent.
Statistics Sweden noted that prices also rose last month on package holidays, food, non-alcoholic beverages, restaurant and hotel services and miscellaneous goods and services. The CPIF inflation rate excluding energy rose from 1.8 to 1.9 percent in November.
The price of clothes also rose in November, but that could be linked to the usual seasonal changes.
Mobile phone, audio-visual and photo equipment prices fell last month, somewhat offsetting the rise in other consumer goods.