But price pressures were already on the rise before hostilities broke out: the inflation rate has been above 4% for a year now. Inflation has not been confined to energy and food prices for some time now. Stripping out these two components, core  1/5  BIS - Central bankers' speeches  inflation stood at 4.8% in September.
Furthermore, following Sweden’s accession to the European Union in 1995, factors such as the growth of the IT industry benefitting from the increases in inbound investment contributed  BIS central bankers’ speeches  1  to productivity growth. In fact, Sweden’s potential growth actually increased after the bursting of the bubble.