Wages have fallen the most since the crisis of the 1990s

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Published 19 December 2021 at 12.05

Economics. Due to inflation, wages in Sweden are now declining more than they have been since the financial crisis in the 1990s.

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Right now, inflation in Sweden is two percentage points higher than the wage increase rate on an annual basis, reports TT.

Since inflation is currently the highest since 1993, the real wage fall in December is also the largest at 28 years, minus two percent, writes TT.

This means that we are now in “a new situation”, says Nordea's chief analyst Susanne Spector.

Nordea's assessment is that salaries will continue to grow more slowly than inflation at least until the summer of 2022.

The situation is believed to lead to increased union pressure on companies to raise wages. At the same time, more and more economists are beginning to question the mantra that the inflation we are seeing now is “transient”. – If it were the case that we enter a new world where it will be easier to raise prices, then the acceptance of raising wages would also be greater for companies, she tells TT.

Inflation

  • Fed: Inflation is no longer & quot; transient & quot;
  • US producer prices worry – increase half as fast as in Sweden
  • Swedish inflation the highest since the crisis of the 1990s
  • US inflation & quot; the highest in 39 years & quot; – according to quoted figures
  • Fed chief: We must stop claiming that inflation is & quot; transient & quot;

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