STOCKHOLM, (Reuters) – The rise in headline inflation in Sweden was caused by high energy prices. Riksbank Governor Stefan Ingves stated Tuesday that the central bank doesn’t need to alter its monetary policies at the moment.

According to Statistics Office figures released Tuesday, November’s headline inflation rose by 3.6% compared to 2020. It was the fastest increase in the past three years.

Ingves, Governor of Sweden said that the recent inflation measurement is largely due to rising energy prices in an interview for Swedish news agency TT.

“If energy prices are removed, the inflation rate is 1.9%.”

Headline inflation is the central bank’s goal.

Ingves answered the question “You cannot tell that at this moment”.

The Riksbank maintained its policy at the most recent meeting. They argued that an inflation spike was caused by problems with economies restarting following the pandemic, and it would likely not last.

Ingves stated that inflation is expected to rise slightly above 3% in the following six months if you take a look at the latest monetary policy report. After that point, inflation is expected to fall again.”

Already, Riksbank is reducing its bond purchasing programme that was launched in the wake of the pandemic. It intends to maintain its overall balance sheet relatively unchanged for next year.

The rate increase would mark the beginning of the pandemic and will be implemented sometime in 2024.