The Riksbank considers new target variable and variation band
The Riksbank is considering changing the target variable for the inflation target to the CPIF. As inflation will always vary around 2 per cent, a variation band of +/- 1 percentage point is being also considered to illustrate this uncertainty. The changes are expected to be able to be implemented at the monetary policy meeting in September 2017.Ever since an inflation target was introduced, it has been defined as the annual change in the consumer price index (CPI). However, in recent years, the CPI has become increasingly difficult to use as guidance for monetary policy, as the CPI is