Jansson sees scope to wait on policy despite summer inflation rise
Riksbank Deputy Governor Per Jansson stated that the Swedish central bank has scope to wait before adjusting monetary policy, despite summer inflation figures coming in higher than expected. Speaking at the Swedish Bankers’ Association, he reaffirmed confidence in the 2 percent target.
Summer price spikes cloud the outlook
Deputy Governor Per Jansson noted that while Sweden’s initial inflation position was favorable, higher-than-expected summer price readings have clouded the economic outlook.
The recent price acceleration was primarily driven by travel-related services, which typically fluctuate during the summer period before subsiding.
However, Jansson warned that the rise could also stem from broader indirect effects of supply disruptions, including elevated aviation fuel prices, which might make the price increases more persistent.
While economic growth has exceeded previous projections, the domestic labor market remains subdued, leading Jansson to conclude that the Swedish economy does not show immediate signs of overheating.
Anchored expectations allow patience
Long-term inflation expectations remain anchored close to the 2 percent target, supported by orderly wage formation among social partners.
Jansson emphasized that this stability grants policymakers room to assess incoming data before modifying the policy stance.
“Ahead of our next monetary policy meeting, at the end of September, we need to analyse the information,” Jansson said, stressing he would support tightening if a broader inflation problem emerges.
Calculated calm before September
Jansson strikes a pragmatic balance between acknowledging temporary supply shocks and defending Riksbank credibility.
By anchoring policy patience to stable inflation expectations, he buys valuable time before the September meeting.
This wait-and-see approach rightly prioritizes broad labor trends over volatile summer data noise.