After struggling with all the Covid-19 regulations for 2 years, being forced to close one of our stores, finally seeing light at the end of the tunnel, inflation is hitting. And, it hits hard. Food prices are going through the roof, energy prices are at levels never seen before and to ice the cake, Riksbanken, Sweden's equivalent to the Fed, raises the interest rate by 1%.
Don't get me wrong, I fully understand that they raised the policy rate but it should have happened a long time ago. We have a head of National bank who reacts to the market instead of acting. For example, we had negative policy for a very long time when it was not needed. If he had acted on the market and raised the policy rate in time, a few tenths of a percent would have been enough instead. This could have moderated inflation.
I also believe that this inflation is largely created by all the politicians who dismantled fully functioning clean and predictable energy production. Everyone could see that this would lead to increased prices for just about everything.
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