Sweden experienced a decline in the inflation rate, measured by the Consumer Price Index (KPI), dropping to 6.5% in September 2023 from the previous month’s 7.5%. The monthly change from August to September registered at 0.5% according to KPI, while the inflation rate based on KPIF (Consumer Price Index with fixed interest rates) was 4.0% in September.
Mikael Nordin, a statistician at Statistics Sweden (SCB), attributed the broad price decreases in September to factors such as the continued decrease in electricity prices.
Key Insights:
- Sectoral Impact: The arts, entertainment, and recreation sector experienced a decline in the inflation rate, while the transportation and storage sector saw an increase.
- Rising Household Costs: Increased interest costs for household mortgages contributed significantly, accounting for 2.7 percentage points of the inflation rate according to KPI.
- Elusive Impact of Electricity Prices: Despite a significant 45.3% decrease in electricity prices since September 2022, this contributed negatively by 2.4 percentage points to the inflation rate.
- Contributions to Inflation: Price increases in clothing, furniture, fuel, and recreation and culture played a role in counteracting the overall decline.
Monthly Changes and Contributions to KPI:
- Clothing Surge: Clothing prices surged by 4.9%, contributing 0.2 percentage points to the monthly change in KPI.
- Electricity Decline: A 5.5% decrease in electricity prices had a negative impact of -0.2 percentage points on the monthly change.
- Housing Costs: Rising costs related to home ownership, including both egnahem and bostadsrätt, contributed positively to the monthly change.
- Fuel and Travel: Increases in fuel prices and expenses related to recreation and culture made positive contributions.