The monetary policy strategy has most likely contributed to inflation being lower than it would otherwise have been. Another important explanation for the low inflation is the weak international economic development. Sweden is a small open economy that is affected by international developments. The prices of the goods Swedish companies import are affected partly by global market prices of traded goods and services and partly by the exchange rate.6  6  4  The Riksbank’s method of measuring global market prices of traded goods and services involves weighing together developments in prices of exports in countries that are important for Swedish imports. BIS central bankers’ speeches  Global market prices appear to follow international economic developments relatively well. Like global GDP, prices of traded goods and services fell in connection with the financial crisis in 2008. When the international recovery began in 2010, these prices also began to rise. However, in recent years, global economic activity has slowed down again and at the same time the rate of increase in global market prices of traded goods and services has fallen. Over the past year, these prices have remained in principle unchanged. The prices Swedish companies pay in SEK for imports are also affected by the krona exchange rate. The krona weakened substantially against other currencies in connection with the financial crisis, which meant that import prices for consumer goods in the producer channel actually increased quite substantially when measured in Swedish krona, despite the fall in international prices.

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