The use of the CPI as the target variable has, however, led to some difficulties and we have therefore analysed other inflation indices as well in our interest rate decisions, more recently the CPIF (the CPI with a fixed rate of interest). It may, however, be difficult to evaluate monetary policy if there are major differences between the development of the variable that guides the Riksbank, more recently the CPIF, and the formal target variable, the CPI. Another problem is that both domestic and overseas forecasters relatively seldom take into account the fact that the Swedish CPI is calculated the way it is when they describe the situation in Sweden. This can lead to misleading international comparisons. In recent years, for example, eye-catching headlines have appeared at regular intervals in the media saying that Sweden is in deflation, despite this being largely due to the fact that housing costs in the CPI have gone down when the Riksbank has cut the repo rate. This can give the impression that the situation in Sweden is worse and the inflation is much lower than in other countries, despite the difference being because the Swedish CPI is particularly sensitive to changes in the policy rate. It may therefore be time to open up a discussion on the target variable. In their evaluation, Goodfriend and King suggest that the target be expressed in terms of the CPIF. An  22  See Flodén (2015). 23  See for example Williams (2009), Blanchard, et al.
I also wish that our commitment to achieve future success of the industry as reflected in this event by the joint efforts and collaboration of the regulators, the industry, the market participants and the relevant parties will be further enhanced moving forward. In this regard, I would again congratulate AIBIM on its continuous effort undertake the initiatives in promoting Islamic finance, particularly by organizing this event. 2  BIS Review 115/2006  On this note, I wish you a successful and eventful week. Dengan lafaz Bismillahirrahmanirrahim, saya dengan sukacitanya merasmikan pelancaran "Kuala Lumpur International Islamic Financial Expo 2006". Thank you. BIS Review 115/2006  3