It was a worse outcome than expected, notes Central Bank Governor Erik Thedéen.
This summer's heat waves caused many tourists to redirect their vacation plans from Spain and France to Sweden for a "coolcation" in a cooler climate.
At the same time, demand for hotels and flights increased when Latin star Bad Bunny and metal band System of a Down sold out their concerts at Strawberry Arena in Stockholm.
Strong oscillations
We are seeing very strong fluctuations in travel-related services - these are flights, hotels and restaurants, Erik Thedéen tells TT.
The Swedish Central Bank's forecast for CPIF inflation was 0.49 percent in July, but the outcome was clearly higher - 0.7 percent. However, the figures are unusually low due to the government's temporary tax cuts on food and fuel.
It is worth remembering that the inflation picture is complicated by a series of temporary fiscal policy measures, says Thedéen.
Excluding the tax cuts, CPIF inflation ended at 2.2 percent, according to the central bank's calculations. This was also higher than the Swedish Central Bank's forecast, which was 1.95 percent.
Did prices go up because many tourists chose Sweden for a cooler vacation?
"Yes, maybe. But I don't think it's a huge effect. I think the fluctuations are more connected to concert events and such," says Thedéen.
Companies adjust prices
The Swedish Central Bank stated at a press conference yesterday that flight and hotel prices often rise during the summer, but that they have risen unusually much in recent years.
The increase could be due to companies in the sector becoming more active in their pricing and more closely following demand, according to the central bank. Erik Thedéen describes this as more “dynamic pricing”.
That is, many people go to the websites and want to request the services, then the prices go up. That means there is a direct connection to demand - and part of the demand in the summer is of course tourism, and then there are some concerts that may have driven a lot of visits to Stockholm and the rest of the country.
