Consumer Price Index (CPI), August 2020
Inflation rate was 0.7 percent in August 2020
Statistical news from Statistics Sweden 2020-09-10 9.30
The inflation rate according to the CPIF (Consumer Price Index with fixed interest rate) was 0.7 percent in August 2020, up from 0.5 percent in July. The change on a monthly basis between July and August was -0.1 percent.
In brief
- Prices on electricity rose significantly between July and August, but prices remained low compared to last year
- Prices on rental cars fell after strong upturns in June and July
- Price increases on clothing and footwear were seasonally small
- 1.2 percent of the basket was imputed due to absence of consumption
| Index Numbers | Monthly changes, percent |
Annual changes, percent |
|
|---|---|---|---|
| CPI (1980=100) | 337.07 | ‑0.1 | 0.8 |
| CPIF (1987=100) | 220.32 | ‑0.1 | 0.7 |
| CPIF-XE (1987=100) | 208.62 | ‑0.5 | 1.4 |
Rental car prices fell
The CPIF fell by 0.1 percent between July and August. In the corresponding period a year ago, the CPIF fell by 0.4 percent.
The largest contribution to the CPIF monthly rate came from price declines on transport, in particular lower prices on rental cars and transport services. Prices on rental cars fell after strong upturns in recent months. Falling prices on package holidays and food also made downward contributions to the change in the CPIF.
Rising prices on electricity, clothing and footwear, and miscellaneous goods and services partially offset the downward contribution to the change. Prices on clothing and footwear increased in August, although less than the seasonal normal.
The table below shows changes on a monthly basis and contributions to the CPIF based on the goods and services that had the largest impact on the CPIF in August 2020. The results are reported per COICOP category; COICOP refers to the United Nations classification of household consumption expenditure.
| Name (Coicop) | Monthly changes, percent | Contribution to CPIF Monthly change, percentage points |
|---|---|---|
| Food (01.1) | ‑0.6 | ‑0.1 |
| Clothing and footwear (03) | 1.4 | 0.1 |
| Electricity (04.5.1) | 11.5 | 0.4 |
| Transport (07) | ‑2.9 | ‑0.4 |
| Car rental (07.2.4) | ‑33.4 | ‑0.2 |
| Transport services (07.3) | ‑5.4 | ‑0.2 |
| Package holidays (09.6) | ‑16.8 | ‑0.2 |
| Misc. goods and services (12) | 1.1 | 0.1 |
Seasonal patterns and temporary price changes
Price changes on goods and services may be seasonal or temporary. The figure above shows effects on a monthly basis for the goods and services with the largest impact on the CPIF.
Prices for transport fell in August, as they did in the same period in the past two years. However, the negative contribution to the CPIF was greater in this period. Prices on rental cars, in particular, were lower than usual. In August, prices for food and package holidays also fell, although not as much as in the same period a year ago.
Although prices on electricity usually rise somewhat in August, they rose considerably more this year compared to the same period in 2018 and in 2019. In addition, prices on clothing and footwear usually increase between July and August after summer sales. However, this contribution to the CPIF was only minor this year.
The inflation rate in August
The inflation rate according to the CPIF, that is, the change in the CPIF over the past 12-month period, was 0.7 percent in August 2020, up from 0.5 percent in July.
Rising prices on food and non-alcoholic beverages were the main contributors to the change in the CPIF in August. Higher prices in restaurants, miscellaneous goods and services and housing also made upward contributions to the inflation rate.
This increase was mainly offset by falling prices on electricity, fuel and communications. Despite an increase between July and August, prices on electricity remained low compared to August a year ago.
The inflation rate according to the CPIF excluding energy was 1.4 percent in August, down from 1.5 percent in July.
| Name (Coicop) | Yearly change, percent | Contribution yearly change CPIF percentage points |
|---|---|---|
| Food and non-alcoholic beverages (01) | 2.0 | 0.3 |
| Electricity (04.5.1) | ‑6.9 | ‑0.3 |
| Rented and housing co-operative dwellings: rent incl. heating (04.S) | 1.6 | 0.2 |
| Housing (04.x) | 2.5 | 0.2 |
| Fuel (07.2.2) | ‑9.9 | ‑0.3 |
| Communication (08.2) | ‑11.9 | ‑0.2 |
| Recreation and culture (09) | ‑1.2 | ‑0.1 |
| Restaurants (11.1) | 2.4 | 0.2 |
| Misc. Goods and services (12) | 3.1 | 0.2 |
Other measures of inflation
Statistics Sweden uses different inflation measures for different purposes. The CPIF is the Riksbank’s target variable, while the CPI is the measure used for purposes of compensation.
Effects of the coronavirus pandemic on calculations
Measures in response to the corona pandemic have led Swedish consumers to adapt parts of their consumption. In some cases, stores have closed, but it remains possible to purchase products elsewhere. In other cases, consumption has ceased completely. These developments make calculating the consumer price index particularly challenging.
Due to a lack of consumption, prices on items such as tickets to sporting events, theatres and international travel have been imputed to some degree. In total, 1.20 percent of the CPI basket was imputed based on the year-on-year change in non-imputed product groups. For further information about measurement issues related to the coronavirus pandemic, follow the link below.
Meausurement issues related to the coronavirus pandemic (pdf)
Definitions and explanations
The CPIF shows the same price trend as the CPI, but without the direct effects of a changed monetary policy. The CPIF is the Riksbank’s target variable for the inflation target.
The CPIF excluding energy (CPIF-XE) and the CPIF with constant tax (CPIF-CT) are two other measures of inflation produced by Statistics Sweden on behalf of the Riksbank. In the CPIF-XE, energy products are excluded from the CPIF, while in the CPIF-CT the taxes and subsidies associated with the products in the CPIF are kept constant.
The HICP (Harmonised Index of Consumer Prices) is produced by all EU Member States. This measure has a somewhat smaller coverage than the CPI and the CPIF, mainly because parts of households’ housing costs are omitted.
Next publishing will be
2020-10-13 at 9:30.
Statistical Database
More information is available in the Statistical Database
Feel free to use the facts from this statistical news but remember to state Source: Statistics Sweden.