Experts who only a week ago indicated food prices as a product group that usually rises in price during the summer and thus can be used as a lever for inflation did not rise in price as usual and therefore does not contribute to stabilizing the rate of inflation. If this is true, inflation is likely to fall further. I maintain my expectation of 1.7 percent.
However, I agree with the voice of the critics that Riksbanken, in its eagerness to manage inflation, has pushed too hard with increases in the policy rate. Just like his predecessor Stefan Ingves, the current central bank governor Erik Thedéen seems to lack a vigorous, zestful touch. Stefan Ingves applied a negative policy rate during a boom for many years, while Erik Thedéen, with his focus only on the inflation target, has brought Sweden deeper than necessary into a recession. Both were/are completely dull of hearing to the outside world.
Unlike Sweden, America seems to be seeing the end of its recession. Bank of America Corporation Common Stock (BAC) CEO Brian Moynihan tells CBS they no longer predict a long-term downturn for the economy. (BAC)'s latest forecast indicates that the Federal Reserve's (FED) efforts to bring down inflation while keeping the US economy stable appear to be working. CEO Brian Moynihan says quote "We've won the war on inflation, it's come down. It's not where people want it yet, but we have to be careful that we don't try to be so perfect that we actually end up in a recession." unquote.
Hopefully, the FED will listen to its surroundings, unlike its Swedish colleague Riksbanken, which has run its own race. With devastating outcome.
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