Consumer Price Index (CPI), February 2023
Inflation rate according to CPI was 12.0 percent in February 2023
Statistical news from Statistics Sweden 2023-03-15 8.00
The CPI 12-month inflation rate was 12.0 percent in February 2023, up from 11.7 percent in January. On a monthly basis, the inflation rate according to the CPI increased by 1.1 percent from January to February. The CPIF (Consumer price Index with fixed interest rate) 12-month inflation rate was 9,4 in February.
“Food prices rose by 2.8 percent in the last month which contributed to an increase in the inflation rate from January to February “, says Caroline Neander, statistician at Statistics Sweden
In brief
| Index Numbers |
Monthly changes, percent |
Annual changes, percent |
|
|---|---|---|---|
| CPI (1980=100) | 395.82 | 1.1 | 12.0 |
| CPIF (1987=100) | 253.82 | 0.9 | 9.4 |
| CPIF-XE (1987=100) | 236.17 | 1.5 | 9.3 |
- The interest rates for households’ mortgages rose and contributed with 2.7 percentage points to the annual inflation rate according to CPI
- Food prices rose by 22.1 percent in the past year to February 2023 and 2,8 percent since January
- Inflation rate increased despite falling electricity prices
- The annual inflation rate according to CPIF excluding energy increased from 8.7 percent in January to 9.3 percent in February
“The inflation rate according to the CPI was higher than CPIF because of the increased mortgages interest rates. This effect is eliminated from CPIF. Otherwise, the two measures are similar”, says Mikael Nordin, statistician at Statistics Sweden.
Rising food prices
The CPI increased by 1.1 percent from January to February. In the corresponding period a year ago, prices went up by 0.9 per cent.
The inflation rate was affected by a widespread price increase within food, but vegetable prices increased slightly more than other food products. Prices increased for recreation and culture, which includes package holidays and home electronics. In housing, the costs rose mainly because of higher interest costs, both for owner occupied housing and tenant owned apartments. Prices also increased for clothing, furniture, accommodation and miscellaneous goods and services. There were also several price increases within the group of transport services.
The price increases were offset by falling electricity prices, which moderated rising housing costs.
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 February 2023. 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 CPI Monthly change, percentage points |
|---|---|---|
| Food (01.1) | 2.8 | 0.4 |
| Clothing (03.1) | 4.7 | 0.2 |
| Electricity (04.5.1) | ‑8.9 | ‑0.4 |
| Interest expense, owner occupied-housing (part of 04.x) | 3.9 | 0.1 |
| Interest expense, tenant-owned apartments (part of 04.y) | 4.6 | 0.1 |
| Furniture (05.1) | 3.7 | 0.1 |
| Transport services (07.3) | 2.9 | 0.1 |
| Audiovisual and photographic equipment (09.1) | 4.6 | 0.1 |
| Package holidays (09.6) | 12.5 | 0.1 |
| Accommodation service (11.2) | 5.1 | 0.1 |
| Miscellaneous goods and services (12) | 1.0 | 0.1 |
Increasing inflation rate in February
The inflation rate according to CPI, that is, the change in CPI from the same month of the previous year, was 12.0 percent in February 2023. This is an increase from January when the inflation rate was 11.7 percent.
The inflation rate was affected by a broad price increase within food where the main contributions came from milk, cheese, eggs and vegetables. Also, the housing costs have increased during the last year where the largest contributions came from increased mortgage interest rates and electricity prices. They contributed with 2.7 and 0,7 percentage points respectively.
In addition, there have also been price increases within recreation and culture, which includes package holidays. Price increases for restaurant visits, accommodation, furnishings and household goods were also noted. Car prices went up in February, likewise, did prices for personal care.
The inflation rate according to the CPIF, which unlike CPI is not affected by changes in mortgage interest rates, was 9,4 percent in February. This is an increase compared to January when it was 9.3 percent.
The inflation rate calculated excluding energy products (CPIF-XE) was 9.3 percent in February, which is an increase compared to January when it was 8.7 percent.
| Category (Coicop) | Yearly change, percent |
Contribution yearly change CPI percentage points |
|---|---|---|
| Food (01.1) | 22.1 | 2.6 |
| Clothing and footwear (03) | 8.9 | 0.4 |
| Housing (04) | 18.4 | 4.3 |
| Furnishings and household goods (05) | 13.2 | 0.8 |
| Motor cars (07.1.1) | 7.9 | 0.3 |
| Recreation and culture (09) | 8.3 | 1.1 |
| Catering services (11) | 10.4 | 1.0 |
| Personal care (12.1) | 12.2 | 0.3 |
CPI and CPIF, two different measures of inflation
As from the publication of CPI regarding January 2023, the statistical news will shift the main focus from CPIF to CPI. This affects the title and the introduction, but also the tables and diagrams that are presented. CPIF will continue to be presented in the statistical news. The reason behind the change in the statistical news is an increased interest in the general price trend in Sweden as shown by the CPI.
CPI and CPIF are two different measures of inflation that Statistics Sweden calculates. The most common measure of inflation in Sweden is the change in the Consumer Price Index (CPI), but it is the CPIF that is the measure that the Riksbank uses in its inflation target. The CPIF includes the same goods and services as the CPI. The difference between CPI and CPIF is that in CPIF, interest rates for households’ mortgages are kept constant. This means that the effect of changes in interest rates for households’ mortgages is only captured in the CPI and not in the CPIF.
Different 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.
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
2023-04-14 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.