Inflationsmål

Inflationsmål, or inflation targeting, is a formal policy objective set by a central bank to achieve a specified rate of inflation over time. The target is typically a single number, commonly around 2 percent, and is measured using a price index such as the consumer price index (CPI) or another price measure. The aim is to provide a clear benchmark for monetary policy and to anchor expectations about future price changes.

Implementation and purpose: A central bank uses interest rate adjustments and other tools to steer actual inflation toward the target. Regular communication, such as forecasts and explanations of policy decisions, is often published to enhance transparency and accountability. By guiding expectations, an inflation target seeks to reduce uncertainty for households and firms and to promote price stability, which supports sustainable growth.

Variants and examples: Inflation targeting has been adopted by many advanced economies. The European Central Bank, for example, targets inflation at 2 percent over the medium term. Other countries—such as the United Kingdom, Canada, Sweden, and New Zealand—have similar frameworks, sometimes with bands or horizons around the target. Some regimes also consider alternative measures or incorporate a broader mandate, such as a secondary objective related to employment or financial stability.

Criticism and considerations: Critics argue that strict targets may overlook real economic fluctuations or financial stability concerns, especially during supply shocks or asset bubbles. Proponents contend that transparent targets help anchor expectations, discipline policy, and improve economic planning. The effectiveness of an inflationsmål depends on credible implementation, reliable data, and clear communication.