• The interest rates for household’s mortgages rose and contributed with 2.2 percentage points to the annual inflation rate according to CPI.
• Lower electricity prices contributed to decreased housing costs.
• Fuel prices were 11.5 percent lower compared to the corresponding month last year.
• The annual inflation rate according to CPIF excluding energy decreased from 4.4 percent in January to 3.5 percent in February, which is the lowest rate since March 2022.

Decreased electricity prices lowered the housing costs

The CPI increased by 0.2 percent from January to February. In the corresponding period a year ago, prices increased by 1.1 percent.

The monthly change in February was mainly due to lower electricity prices, which contributed to decreased housing costs, simultaneously the actual rentals for housing rose. Furthermore, there were seasonally normal price rises for clothing. There were also price increases in fuel, recreational and cultural services, as well as for restaurant and hotel visits.

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 2024. The results are presented by COICOP category. COICOP refers to the United Nations classification of household consumption expenditure.

Contributions to the inflation rate in February

The inflation rate according to the CPI, that is, the change in the CPI from the same month last year, was 4.5 percent in February 2024. This is a decrease from January, when the inflation rate was 5.4 percent.

The inflation rate in February was mainly affected by increased housing costs, where the main contributions were risen fees for rented and tenant-owned apartments as well as increased mortgage costs. Housing costs were moderated by lower electricity prices. Furthermore, prices rose for goods and services within recreational and cultural services, restaurant visits and clothing.

In addition to the lower electricity prices, the price increases were also offset by the fact that fuel prices have fallen since the corresponding month last year.

The inflation rate according to CPIF, which unlike CPI is not affected by changes in mortgage interest rates, was 2.5 percent in February. The corresponding rate for January was 3.3 percent.

The inflation rate calculated excluding energy products (CPIF-XE) was 3.5 percent in February, which is a decrease compared to January when it was 4.4 percent. It is the lowest rate since March 2022.

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. Consequently, 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.