New figures bring Swedish inflation close to two-percent target

The Local Sweden
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New figures bring Swedish inflation close to two-percent target
Electricity prices fell radically in Sweden in December 2023 compared to 2022. Photo: Janerik Henriksson/TT

Sweden's inflation rate fell in December, new figures reveal, albeit slightly less than experts had hoped for.


The yearly inflation rate according to the country’s consumer price index (CPI) stood at 4.4 percent in December, down from 5.8 percent in November, according to national number-crunchers Statistics Sweden.

Inflation measured according to CPIF – the consumer price index with mortgage rates taken out of the equation – also fell, to 2.3 percent, bringing it close to the Riksbank’s two-percent target (which refers to CPIF). 

“The annual inflation rate according to CPIF decreased from 3.6 percent to 2.3 percent, which is the lowest notation since July 2021. This can mainly be explained by significantly lower electricity prices compared to December 2022,” statistician Carl Mårtensson said in a statement.

Recreation and culture, as well as higher housing costs and price increases to food and non-alcoholic beverages, contributed to the annual inflation rate, according to Statistics Sweden.

Electricity prices, on the other hand, fell 38.9 percent compared to December 2022.


Monday’s news confirms the slowdown in inflation figures, which is an important factor for the Riksbank when it decides when to start lowering Sweden’s key interest rate, the policy rate.

The new figures don’t significantly affect forecasts, which predict that the Riksbank will cut the policy rate from its current 4.0 percent this summer, but the fact that inflation fell slightly less than expected reduces the likelihood of it lowering the rate even sooner than that.

According to Bloomberg, experts had predicted a CPI inflation of 4.3 percent and CPIF inflation of 2.2 percent in December.


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