Inflation continues to fall, and food prices are being pushed down. At the same time, the latest figures show that households are still being hit by sharply rising electricity prices—even as price increases in the economy are slowing down.
Swedish inflation continues to fall. In June, CPIF inflation fell to 1.3 percent, down from 1.5 percent in May, according to Statistics Sweden's latest estimate. At the same time, CPI inflation stood at 0.7 percent.
The main reason for the decline is that food prices continue to fall. Compared with the same month last year, food prices have fallen by 7 percent. Lower fuel prices in June also helped keep price increases in check, while electricity prices remained 24 percent higher than a year ago.
– The month-over-month increase from May to June showed that price increases for package tours were in line with seasonal trends, a trend that was partially offset by falling fuel prices and summer sales on clothing, says Caroline Neander, a price statistician at Statistics Sweden.
At the same time, Statistics Sweden (SCB) notes that prices for package tours rose sharply during the month, which is typical for this time of year. Car rentals and international airfare also became more expensive, while clothing, furniture, and several food items became cheaper.
The lower inflation means that the CPIF is now well below the Riksbank’s inflation target of 2 percent, while energy prices still pose a significant upside risk to household expenses.
