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Swedish inflation falls more than expected to 5.8 percent

Emma Löfgren
Emma Löfgren - [email protected]
Swedish inflation falls more than expected to 5.8 percent
Swedish electricity prices are lower than last year. Photo: Janerik Henriksson/TT

Sweden’s inflation fell faster than expected in November, new figures show.

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The yearly inflation rate according to the country’s Consumer Price Index (CPI) stood at 5.8 percent in November, down from 6.5 percent in October, according to number crunchers Statistics Sweden.

Inflation measured according to CPIF – the consumer price index with interest rate fluctuations taken out of the equation – also fell, to 3.6 percent, down from 4.2 percent in September.

According to Bloomberg, experts had predicted a CPI inflation of 6.0 percent in November, so the news gave those hoping for the Riksbank to lower interest rates sooner rather than later a boost.

The Riksbank uses the interest rate as one of its tools to bring down CPIF inflation to its two percent target.

Last month it left the rate unchanged, breaking a streak of eight consecutive hikes, and experts generally believe that inflation will fall enough that the bank starts lowering the rate in 2024.

ANALYSIS:

Higher household costs, including mortgages and rents, were some of the main contributors to the inflation rate in November, offset by falling electricity and fuel prices compared to this time last year.

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Electricity prices, albeit on an early-winter rise, have fallen 22.5 percent since November 2022, and fuel prices are 6.8 percent lower.

Food prices, on the other hand, have gone up 6.5 percent since the same month last year.

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