The consumer price index (CPI) for August ended up at 7.5%, which can be compared with July's 9.3%. The main reason for the reduction is that energy prices were lower during August.
Since Sweden is not self-sufficient but imports a lot of food mainly from Europe, Sweden will continue to lag behind in terms of inflation compared to the rest of Europe. Caused entirely by the weak domestic currency.
I am still convinced that Sweden's central bank AKA Riksbanken will raise the policy rate on 21 September.
Similar to previous increases in the policy rate, which has been Riksbanken's approach to try to defend the Swedish krona, Riksbanken will continue on the path taken.
Personally, I am sure that Riksbanken's attempts will be completely fruitless. The Swedish krona will fall more than a skydiver.
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