Sweden has long been recognized as one of Scandinavia’s most resilient and innovative economies, driven strongly by high-tech manufacturing, green technology, and robust public infrastructure. Following the global economic uncertainties of the late 2010s, Sweden maintained a competitive position with fluctuating domestic consumption and strong export performance. While many European nations struggled with post-pandemic recovery, Sweden's labor market adapted rapidly, keeping unemployment rates stable.
Table 1 – A comparison of Sweden and 27-nation European Union (EU) annual % real GDP growth rates – 2017–2022
| Year | Sweden (%) | 27-nation EU (%) |
|---|---|---|
| 2017 | 2.8 | 2.6 |
| 2018 | 2.0 | 2.0 |
| 2019 | 1.4 | 1.6 |
| 2020 | -2.2 | -5.6 |
| 2021 | 5.4 | 5.3 |
| 2022 | 2.6 | 3.4 |
Sweden's central bank (Sveriges Riksbank) monitored consumer price changes closely during this period of recovery, as domestic demand rebounded alongside supply-chain bottlenecks and rising energy costs, which threatened to push inflation higher heading into late 2021 and 2022.
Table 2 – Sweden's Consumer Price Index (CPI) Quarterly Figures – March 2021 to March 2022
| Jan 2015 = 100 | Mar-21 | Jun-21 | Sep-21 | Dec-21 | Mar-22 |
|---|---|---|---|---|---|
| Consumer Price Index (CPI) | 106.3 | 107.1 | 108.0 | 109.4 | 110.8 |
Using the data in Table 2, calculate Sweden's rate of inflation between March 2021 and March 2022. Give your answer correct to two decimal places.
