• The interest rates for household’s mortgages rose and contributed with 2.3 percentage points to the annual inflation rate according to CPI.
• Electricity prices rose in December but were 38,9 percent lower than 12 months ago.
• The annual inflation rate according to CPIF was 2,3 percent, which is the lowest notation since July 2021 when it was 1.7 percent.
• The annual inflation rate according to CPIF excluding energy decreased from 5.4 percent in November to 5.3 percent in December.

Increased travel prices

The CPI increased by 0.7 percent from November to December. In the corresponding period a year ago, prices increased by 2.1 percent.

In December, prices have increased for package holidays and transport services. In transport services, it was mainly the air travel which had a price increase, which is seasonally normal.

There were higher interest expenses for household’s mortgages which in a combination with the rising electricity prices contributed to an increase in the housing costs.

Altogether there were broad price increases in December. Furnishings and household equipment, as well as clothing, rose in price. The price increases were partially offset by decreased prices on fuel.

The table below shows changes on a monthly basis and contributions to the CPI based on the goods and services that had the greatest impact on the CPI in December 2023. The results are presented by COICOP category. COICOP refers to the United Nations classification of household consumption expenditure.

Inflation rate lower in December

The inflation rate according to the CPI, that is, the change in the CPI from the same month last year, was 4.4 percent in December 2023. This is a decrease from November, when the inflation rate was 5.8 percent.

Recreation and culture contributed to the annual inflation rate. For recreation and culture, package holidays rose in price. Additionally, prices for visiting hotels and restaurants have increased.

The contributions to the inflation rate in December also came from higher housing costs, which was mainly affected by higher interest rates for household’s mortgages and actual rentals for housing. On the other hand, there was a decrease in electricity prices which have fallen by 38,9 percent since December 2022.

Additional price increases came from food and non-alcoholic beverages which have risen by 5.3 percent between December 2022 and December 2023. There have also been price increases within clothing and transport services.

The inflation rate according to CPIF, which unlike CPI is not affected by changes in mortgage interest rates, was 2.3 percent in December. The corresponding rate for November was 3.6 percent. The notation for December at 2.3 was the lowest since July 2021, when it was 1.7 percent.

The inflation rate calculated excluding energy products (CPIF-XE) was 5.3 percent in December, which is a decrease compared to November when it was 5.4 percent.

Changes in 2024

Major changes in the production of the Consumer Price Index will be introduced from 2024. For further information, please see:

Changes in the CPI as from 2024 (pdf)

Different measures of inflation

Statistics Sweden calculates different inflation measures for different purposes. The CPIF is the Riksbank’s target variable, while CPI is the measure used for purposes of compensation. The CPIF includes the same goods and services as CPI. The difference between the CPI and the CPIF is that the latter measure holds interest rates for household’s mortgages constant. As a consequence, thereof, the effect of changed interest rates for household’s mortgages is only captured by the CPI and not the CPIF.

Additional to the CPI and the CPIF, the HICP is also calculated. The HICP is a harmonized measure of inflation used within the EU cooperation. Another index that is calculated each month is CPIF-XE (the CPIF excluding energy products) which is often used as a measure of underlying inflation.