Sweden reports highest inflation in 28 years

Sweden's inflation rose to 3.6 percent in November, up from 3.1 percent in October. This is the country's highest inflation since 1993, Statistics Sweden said in a statement on Tuesday, reported Xinhua.

"Rising energy prices contributed to the highest inflation rate since December 1993," said Mikael Nordin, a statistician at Statistics Sweden.

The 3.6 percent inflation rate is measured according to CPIF (Consumer Price Index with fixed interest).

According to Statistics Sweden, the price of package holidays, food, non-alcoholic beverages, restaurant and hotel services also increased considerably.

Meanwhile, the inflation rate was offset by falling prices on mobile telephones as well as on audio-visual and photographic equipment.

The CPIF is the target variable for the inflation target set by Sweden's central bank the Riksbank, whose Executive Board in its monetary policy meeting on November 24 concluded that substantial fluctuations in global demand had resulted in bottlenecks in production. This, in turn, had led to rapidly rising producer prices.