Economic Commentary: The Riksbank’s attainment of its inflation target over a longer period of time

Date 19/09/2012

In this Economic Commentary we investigate the Riksbank's attainment of its inflation target over a longer period of time. Measured using real-time data, CPI inflation averaged 1.5 per cent during the period 1995-2011. The corresponding figure for CPIF inflation is 1.8 per cent. These results thus show that approximately 0.3 percentage points of the deviation in target attainment for CPI inflation can be explained by the fact that the interest rate, on average, was lowered during the period studied. As the different measures of inflation have different properties it is reasonable to study both CPI and CPIF inflation when evaluating the monetary policy conducted during a certain period.

 

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