Swedish inflation falls in January

Sweden’s rate of inflation fell to 3.2 percent for the month of January, down from 3.5 percent in December.

The consumer price index (CPI) fell by 0.8 percent, with most of the change attributed to an annual adjustment in the basket of prices that make up the index.

According to new figures from Statistics Sweden, up to 0.5 percentage points of the CPI drop are a result of the new CPI basket, with decreasing prices making up the other 0.3 percent.

Seasonal price decreases for clothing and footwear (down 15.1 percent) and package holidays (down 6.2 percent) brought prices down by 0.8 and 0.1 percentage points, respectively.

Lower real estate taxes (down 26.1 percent) contributed 0.2 percentage points to overall lower prices.

Higher food prices (1.4 percent), as well as higher prices for alcoholic beverages and tobacco (5.2 percent) counteracted the decrease by 0.2 percentage points each.

Additional inflation pressures came from higher prices for fuels (2.5 percent), restaurants (1.3 percent), electricity (3.6 percent) and rents (0.8 percent), which each accounted for a 0.1 percentage point price increase.