Consumer Price Index (CPI), June 2020
Inflation rate increased to 0.7 percent in June 2020
Statistical news from Statistics Sweden 2020-07-14 9.30
The inflation rate according to the CPIF (Consumer Price Index with fixed interest rate) was 0.7 percent in June 2020, up from 0.0 percent in May. The increase in the inflation rate is mainly explained by higher prices on food and non- alcoholic beverages. The change on a monthly basis between May and June was 0.6 percent.
The price base amount has been calculated at SEK 47 600 for 2021. This means that it is SEK 300 higher in 2021 than in 2020. For more information, please see the separate statistical news:
In brief
| Index Numbers | Monthly changes, percent |
Annual changes, percent |
|
|---|---|---|---|
| CPI (1980=100) | 336.84 | 0.6 | 0.7 |
| CPIF (1987=100) | 220.21 | 0.6 | 0.7 |
| CPIF-XE (1987=100) | 208.91 | 0.4 | 1.3 |
- Prices for car rentals increased
- Prices on fuel and electricity remained low, but rose slightly
- Prices on vegetables were lower in June than in May
- 2.7 percent of the basket was imputed due to absence of consumption
Price increases on transport affected the CPIF in June
The CPIF rose by 0.6 percent between May and June. In the corresponding period a year ago, the CPIF decreased by 0.1 percent.
The main contribution to the CPIF monthly rate came from price increases on transport. The rise was mainly due to higher prices for operation of personal transport equipment and car hire. Higher prices for electricity also contributed to the increase.
Lower prices on food and non-alcoholic beverages, on vegetables in particular, partially offset the upward contribution to the change.
The table below shows changes on a monthly basis and effects on the CPIF based on the goods and services that had the largest effect on the CPIF in June 2020. The results are reported per COICOP category; COICOP refers to the United Nations classification of household consumption expenditure.
| Name (Coicop) | Monthly changes, percent | Monthly effect on the CPIF, percentage points |
|---|---|---|
| Food non-alcoholic beverages (01) | ‑1.1 | ‑0.2 |
| Vegetables ( 01.1.17) | ‑3.8 | ‑0.1 |
| Electricity (04.5.1) | 5.1 | 0.2 |
| Transport (07) | 3.0 | 0.4 |
| Operation of personal transport equipment (07.2) | 4.3 | 0.2 |
| Other services in respect of personal transport equipment (07.2.4) | 9.8 | 0.1 |
| Recreation and culture (09) | 1.9 | 0.2 |
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 effect on the CPIF.
Prices for food and non-alcoholic beverages fell in June, which they also did in the same period in 2018. This is a departure from June a year ago, when prices rose. With regard to food, downward contributions in this period came from vegetables in particular.
Electricity prices rose, which they also did in the same period in 2018, but not in 2019. Car rental prices, included in the group “other services” under personal transport, increased, and resulted in a significant upward contribution to the change. This is in contrast to 2018 and 2019, when prices for car rental increased, but affected the monthly rate less than in June 2020.
Prices on recreational and cultural services noted a seasonal change, but decreased more in June 2020 than in the same period over the past two years.
Contribution to inflation rate in June
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 June 2020, up from 0.0 percent in May.
The largest contribution to the inflation rate in June 2020 came from higher prices on food and non-alcoholic beverages, in particular on fruit. Higher prices for other services under personal transport equipment, mainly due to higher car rental prices, also resulted in upward contributions to the inflation rate.
Prices in restaurants and miscellaneous goods and services increased. Housing costs also increased, despite lower energy prices. This was mainly offset by falling prices on electricity and fuel, recreation and culture, accommodation services, and telecommunications equipment.
| Name (Coicop) | Yearly change, percent | Yearly change effect, percentage points |
|---|---|---|
| Food and non-alcoholic beverage (01) | 2.6 | 0.4 |
| Fruit (0.1.6) | 13.5 | 0.2 |
| Electricity (04.5.1) | ‑5.1 | ‑0.2 |
| Housing, water, electricity, gas and other fuels (04) | 0.9 | 0.2 |
| Fuel (07.2.2) | ‑11.8 | ‑0.3 |
| Other services in respect of personal transport equipment (07.2.4) | 12.1 | 0.2 |
| Communication (08.2) | ‑11.6 | ‑0.2 |
| Recreation and culture | ‑1.6 | ‑0.2 |
| Restaurants (11.1) | 2.5 | 0.2 |
| Accommodation services (11.2) | ‑18.0 | ‑0.2 |
| Misc. Goods and services (12) | 2.4 | 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 package holidays, international flights and admission tickets have been imputed so as not to affect the inflation rate. For further information about measurement problems related to the coronavirus pandemic, see 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.
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2020-08-12 at 9:30.
Statistical Database
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