the spring, the rate of increase in many services prices also rose, signalling that there were also more domestically generated inflationary pressures. during summer and autumn 2022, cpif inflation continued to rise as price increases for food and other goods became more pronounced ( see figure 4 ). in december, inflation was just over 10 per cent and just under 8. 5 per cent excluding energy prices. in 2023, however, inflation gradually declined. to begin with, the contribution from energy prices, which had fallen at the end of 2022, was reduced. however, cpif inflation excluding energy was still significantly higher than expected in early 2023. the contributions from prices of food and other goods declined gradually over the year, but services prices increased 5 see, for example, the articles “ how are higher commodity prices and freight costs affecting inflation in sweden? ” in monetary policy report, july 2021, “ higher inflation – temporary or persistent? ” in the monetary policy report, november 2021, and “ high energy prices – how will other consumer prices be affected? ” in the monetary policy report, february 2022. 6 see the article “ price rises are spreading in the economy ” in monetary policy report, june 2022. 4 speech unexpectedly fast. at the end of 2023, inflation excluding energy was just over 5 per cent, with services prices being the main driver of inflation. the large increase in energy prices had spillover effects thus, in addition to the persistent disruptions in global value chains that pushed up input and freight prices, the rise in energy prices was both larger and more protracted than expected. this meant that the spillover effects from energy prices to other prices were also larger than expected. the spillover was via indirect effects, with the large increases in energy prices driving up firms ’ production costs, which were passed on to consumers via larger price increases for goods and services. in sweden, however, we experienced very little secondary effects via large wage increases to compensate for the large price increases. energy prices tend to be volatile and affect measured inflation quite substantially. but while energy prices rose dramatically, they are not the only reason why inflation rose as fast and as much as it did. earlier attempts by the riksbank and the national institute of economic research ( nier ) to estimate the indirect effects on inflation of a permanent change in the price of oil or electricity showed that the indirect effects have been about the same size as the direct effect. however, the indirect effects come with a la

speeches fulfils their mission with the required independence. 5. this is only a brief summary of the regulatory requirements imposed by european and national legislation in this area. nevertheless, it is enough to recognise that the rules are manifold and demanding. however, events have demonstrated that these rules are indispensable when verifying the absence or ineffectiveness of self - imposed internal governance models. with the financial crisis, it was politically inevitable, as a result of the understandable social pressure, that the theme of banks ’ internal governance moved from soft law to hard law. is the regulatory framework and the oversight of its compliance by the authorities enough to prevent behaviours similar to those that caused the financial crisis? there is no doubt that this regulatory reinforcement, established and supervised uniformly at european union level, enables us to say that we are much better provided for in terms of corporate governance requirements to ensure financial stability, which cannot go unmentioned. but organisations are formed of people, and as such, the behavioural dimension has been recognised as essential for the effectiveness of a good internal governance model for banks and other enterprises. even the best models may not resist the determination of anyone who might want to sabotage them. but the better they are, the more difficult it is to do so, hence the extreme importance of banks being provided with a robust governance model. without an institutional culture that is oriented towards compliance with rules and best practices, based on values that ensure a lasting reputation, and which are therefore a source of value for the enterprise, the objectives of public regulation may not necessarily be achieved. in fact, institutional culture is an intangible concept but is decisive to the effectiveness of corporate governance. exemplary behaviour is developed in a social environment and becomes more difficult to obtain unless there is an inherent reward. if society does not value the ethical character of behaviours, it is difficult to expect that an organisational culture emerges in enterprises which favours the effectiveness of good governance and best practice. for that reason, ensuring the effectiveness of good corporate governance is not only a task for enterprises, regulators and supervisors ; its effectiveness depends on our collective ability to create a society that duly values ethics. thank you very much for your attention. 4 / 4 bis central bankers'speeches