The home owner allowance increased inflation further


Published 30 March 2023 at 20.08

Economics. Inflation in Sweden increased further due to the government's so-called electricity subsidy, according to Riksbank governor Erik Thedéen.

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The government has paid out SEK 56 billion in electricity support, which several economists believe may have contributed to inflation and thus interest rate increases.

Riksbank governor Erik Thedéen now confirms this in SVT's “30 Minuter”.

– If you hadn't done that way, inflation would have been somewhat lower, he says in the program.

“Probably” the interest rate would therefore also have been lower if the grant billions had not been paid out, Thedéen further admits.

However, he still believes that it was right to distribute the grant money to the house owners.

– The extreme electricity price shock that some households have been exposed to is severely austerity. It seems reasonable to me to compensate them, says Erik Théeden to SVT.


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