Sweden’s Consumer Price Index (KPI) for April 2023 has been released, showing a decrease in inflation from the previous month. According to the Statistics Sweden (SCB), the inflation rate in April 2023 was 10.5%, a slight decrease from March when it was 10.6%. The month-on-month change from March to April was 0.5%. Meanwhile, the inflation rate according to KPIF (Consumer Price Index with fixed interest rates) was 7.6% in April.
The decrease in inflation was primarily attributed to a fall in food prices for the first time since November 2021, according to Caroline Neander, a price statistician at SCB. Prices for groceries decreased by 1.3% in April.
However, rising interest costs for household mortgages contributed 3.0 percentage points to the inflation rate according to KPI, while the price of fuels decreased by 7% over the last year. Inflation rate according to KPIF, excluding energy, decreased from 8.9% in March to 8.4% in April.
Hikes in rent for rental apartments and increased interest costs for both condominiums and detached homes led to higher housing costs. These were partially offset by lower electricity prices in April.
Transportation prices also increased, with transportation services, such as international air travel, making the most significant contribution. However, prices for books fell back after the annual book sale, and there were also price increases for package tours.
The largest contributions to the month-on-month changes in the KPI in April 2023 were from housing costs, particularly rent for rental apartments and interest costs for condominiums and detached homes. However, falling food prices, particularly vegetables and fruit, partially offset these price increases.
In conclusion, the April 2023 KPI shows a slight decrease in inflation from the previous month. While food prices decreased, housing and transportation costs continue to rise, with interest rates on mortgages being the most significant contributor.