Panic buying in Sweden during Covid-19 : An analysis on the effects of panic buying during Covid-19 on the CPI values of groceries in Sweden

Abstract: This paper investigated the effects of panic buying induced by the Covid-19 pandemic on groceries' Consumer Price Index (CPI) within Sweden. The years of interest are mainly 2020 to 2021. However, the thesis also looks into years before the pandemic, specifically 2018-2019. The use of years before the pandemic, is to understand better how the CPI of selected groceries behaves in ordinary years and see if changes in CPI from 2020 to 2021 were out of the ordinary. The paper discusses different economic behaviours, specifically looking into how times of crisis affect consumer behaviour. To better understand how CPI for the chosen groceries behaves, graphs were created to show how the CPI values of the goods change over the years. Secondly, two regression analyses were performed in STATA to test whether there are any correlation between panic buying and changes in the CPI values for the chosen groceries. The results given from the graphs indicated that there could be some relationship between panic buying and CPI changes. However, once the regression analyses had been performed, the results showed no correlation between panic buying and changes in CPI for the chosen groceries. This result is not unexpected, as there can be a variety of reasons behind why panic buying did not induce any abnormal changes in CPI for the goods. These reasons are discussed further later on in the thesis as well.