Published 22 September 2022 at 10.03
Economy. According to SEB, the real inflation that a home owner suffers is 48 percent per year – not 9 percent as it is officially called. At the same time, a calculation from Länsförsäkringar shows that the expenses of middle-class households in January will have increased by 100 percent in one year.
– It looks like it will be a pure bloodbath, says the insurance company's private economist Emma Persson.
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Sweden borrows
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After many “good years” of policy measures aimed at the middle class, such as negative interest rates combined with interest deductions, job tax deductions, square deductions, root deductions and so on, the loan party now looks like it will come to an abrupt end.
– It's just that hope that many have saved during the good years we have now left, says Länsförsäkringar's private economist Emma Persson in a press release.
Households, which for many years were able to live beyond their means without any consequences, will now have to “draw tighten the seat belt” and cut unnecessary expenses, warns Länsförsäkringar.
At the same time, a calculation from SEB shows that the prices of the goods and services that an average Swedish middle-class household suffers from have increased by 48 percent in one year, and not 9 percent as the Riksbank's official inflation measure shows.
In January, however, it is expected to be significantly worse than that. According to Länsförsäkringar's calculations, Swedish families can face doubled costs, i.e. a cost increase of 100 percent, in January compared to December 2020.
– Although January is usually a classically tough month financially, this year it looks to become pure carnage, says Emma Persson.