Despite raised salaries and lower taxes, Swedes won’t spend as much money this summer, new research from the largest Scandinavian bank Nordea says.

The Swedish newspaper Dagens Nyheter writes that the global economy is to blame: “The increasing food prices, fuel prices and property interests have affected Swedes’ budgets. Subsequently you cut down on your holidays abroad.”

This goes hand in hand with a new report about the UK, where analyst Neil Saunders writes that a typical basket of 100 grocery items cost 5.8% more in May than it did at the beginning of the year, in effect adding around £514m a month to the British grocery bill. For hard pressed consumers such an increase comes on top of a host of other price rises and demonstrates why, for many households, inflation feels far higher that the government’s official rate, consequently affecting the household budget.

The research notes that last year Swedish households estimated that they spent around £1200 on their holiday, today it’s down £200 per household. The economy affects the larger families most: families with three children will decrease their holiday budget with 25%.

However the report adds that although Swedes are spending less on holidays this summer, they are still a nation which puts a big amount of money on enjoying the sun somewhere else- this year it is estimated to reach £4 billion.

Saunders adds that the future prospects for food inflation will bring little comfort to the consumer. The research forecasts that food price inflation will remain strong for the duration of 2008 and that an inflationary push will persist into 2009.