Nyberg: Wage settlements an important factor in the assessment of inflation

‘The Swedish economy has been impressively strong in recent years and growth at present in annual terms seems to be in the region of 3 to 4 per cent. This has been accompanied by a vigorous upswing in employment. To date this year the number of persons in employment has been 70,000 higher than a year earlier. It is gratifying, moreover, that inflation has remained low,’ Deputy Governor Lars Nyberg said at a lunch meeting arranged by Aros Maizel.

 

‘A new feature in the picture of inflation is the weak stock market tendency in recent weeks. If this continues, it will tend to subdue demand and thereby reduce the risk of inflation. Attempts to assess this issue will be an important task in the work on the next inflation report.

 

Mr. Nyberg also underscored, however, that the upside risks in the picture of inflation still apply.

 

‘Capacity utilisation in the economy is still rising, though not yet dramatically. We are following developments in the labour market very attentively. The course of the present round of wage negotiations is of central importance for the assessment of inflation and for monetary policy. The Riksbank continues to have a high state of readiness so that rising inflation can be prevented in good time.’