CPIF target variable for monetary policy
The Executive Board of the Riksbank has decided to adopt inflation measured in terms of the CPIF (the consumer price index with a fixed interest rate) as a formal target variable for monetary policy. The target for monetary policy is that the annual change in the CPIF shall be 2 per cent, that is, the same level previously applied to the CPI. The Riksbank will also use a variation band of 1-3 per cent for outcomes for CPIF inflation to illustrate that monetary policy is not able to steer inflation in detail, but that inflation normally varies around the target.“These changes will not affect