Consumer Price Index (CPI), December 2021
Inflation rate was 4.1 percent in December 2021
Statistical news from Statistics Sweden 2022-01-14 9.30
The CPIF (Consumer Price Index with fixed interest rate) 12-month inflation rate was 4.1 percent in December 2021, up from 3.6 percent in November. On a monthly basis, the inflation rate according to the CPIF rose by 1.3 percent between November and December.
“Electricity prices increased in December. This was the highest monthly change noted for electricity prices in the 21st century," says Caroline Neander, statistician at Statistics Sweden.
In brief
| Index Numbers |
Monthly changes, percent |
Annual changes, percent |
|
|---|---|---|---|
| CPI (1980=100) | 352.47 | 1.3 | 3.9 |
| CPIF (1987=100) | 231.28 | 1.3 | 4.1 |
| CPIF-XE (1987=100) | 213.81 | 0.4 | 1.7 |
- Electricity prices rose and were the main contribution to the inflation rate in December
- Food prices increased in December, mainly due to vegetable prices which contributed upwards
- Prices for clothing and transport services increased
- Fuel prices fell in December
- The inflation rate according to CPIF excluding energy decreased from 1.9 percent in November to 1.7 percent in December
Electricity prices strongly contributing
The CPIF rose by 1.3 percent from November to December. In the corresponding period a year ago, the CPIF increased by 0.7 percent.
The main contribution to the CPIF monthly rate came from higher prices on electricity. Food prices also increased, where the main contribution came from higher vegetable prices.
In addition, the cost of home ownership rose. Among other things, there were price increases on certain household appliances that increased the cost of home ownership.
Fuel prices and prices in the recreation and culture group fell in December.
The table below shows changes on a monthly basis and contributions to the CPIF based on the goods and services that had the greatest impact on the CPIF in December 2021. The results are presented by COICOP category. COICOP refers to the United Nations classification of household consumption expenditure.
| Category (Coicop) | Monthly changes, percent | Contribution to CPIF Monthly change, percentage points |
|---|---|---|
| Food (01.1) | 0.9 | 0.1 |
| Clothing (03.1) | 2.6 | 0.1 |
| Electricity (04.5.1) | 21.2 | 1.0 |
| Costs of home ownership (04.x) | 0.9 | 0.1 |
| Fuel (07.2.2) | ‑3.3 | ‑0.1 |
| Transport services (07.3) | 2.7 | 0.1 |
Seasonal patterns and temporary price changes
Price changes on goods and services may be seasonal or temporary. The figure above shows the monthly changes this year and in the two most recent years for the goods and services with the largest impact on the CPIF monthly change.
Both food and clothing, showed a slightly higher price increase in December 2021 than in the corresponding month of 2019 and 2020.
In the last two years in December, electricity prices have increased. However, the price increase in December 2021 was significantly higher compared to the previous year. In December 2019, electricity prices fell.
Costs related to home ownership also show a price increase in December, which was significantly higher compared to December in the last two years.
The monthly change on fuel prices has varied with increased and decreased prices in December. Unlike December 2021 and 2019, when fuel prices fell, the fuel prices rose last year. Prices for transport services rose in December this year, but not as much as in the corresponding month of the last two years.
Contributions to the inflation rate in December
The inflation rate according to the CPIF, that is, the change in the CPIF over the past 12-month period, was 4.1 percent in December 2021, up from 3.6 percent in November.
The rate of inflation was mainly affected by rising electricity prices. Transport prices increased, of which fuel prices had a major impact. Costs related to home ownerships also increased.
There were price increases for food and non-alcoholic beverages, restaurant and hotel services and miscellaneous goods and services which helped to maintain a positive inflation rate.
These price increases were offset by lower prices in the group audiovisual and photographic equipment as well as in the group medical products, appliances and equipment.
The inflation rate according to the CPIF excluding energy was 1.7 percent in December, down from 1.9 percent in November.
| Category (Coicop) | Yearly change, percent | Contribution yearly change CPIF percentage points |
|---|---|---|
| Food and non-alcoholic beverages (01) | 1.7 | 0.3 |
| Electricity (04.5.1) | 50.5 | 1.9 |
| Costs of home ownership (04.x) | 5.6 | 0.4 |
| Medical products, appliances and equipment (06.1) | ‑8.8 | ‑0.2 |
| Transport (07) | 6.0 | 0.8 |
| Audio-visual, photographic and information processing equipment (09.1) | ‑8.7 | ‑0.3 |
| Restaurants and hotels (11) | 4.5 | 0.2 |
| Miscellaneous goods and services (12) | 2.3 | 0.2 |
Other measures of inflation
Statistics Sweden calculates 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
As in the previous month, no product groups were imputed. For further information, see: Special imputations during the coronavirus pandemic (pdf).
Changes in 2022
Major changes in the production of the Consumer Price Index will be introduced from 2022. For further information, please see: Changes in the CPI 2022 (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
2022-02-18 at 8:00.
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.