It's time for the Swedish central bank to let go of the ice rink wall

Today, the Central Bureau of Statistics (SCB) reported for the first time a new indicator for inflation, called "fast CPI". From today, the indicator will be reported one week before the regular inflation report, which this time will be reported next Tuesday.

"Fast CPI" also includes the measure CPIF, where the figures are not affected by changes in interest rates for mortgages, and CPIF-XE, where energy prices are also excluded. "Fast CPI" is only an indicator of the main measures. The more detailed product measurements for food, for example, are not reported today because SCB believes that those figures would be too uncertain.

The preliminary inflation rate according to CPIF fell from 1.2%  in August to 1.1% in September. This means that Sweden is approaching deflation. Deflation is considered an even more harmful phenomenon than inflation. The general price and wage level falls at the same time as the value of money rises. In deflation, debts must be repaid with money that is worth more than when the loans were taken, and therefore deflation has often led to debt crises and more bankruptcies.

The Swedish central bank must start to ACT, and not as usual react.