Consumer Price Index (CPI), May 2020
Inflation rate increased to 0 percent in May 2020
Statistical news from Statistics Sweden 2020-06-11 9.30
The inflation rate according to the CPIF (Consumer Price Index with fixed interest rate) was 0.0 percent in May 2020, up from -0.4 percent in April. The increase in the inflation rate is mainly explained by price returns from low levels in April in several product groups. The change on a monthly basis between April and May was 0.6 percent.
In brief
| Index Numbers | Monthly changes, percent |
Annual changes, percent |
|
|---|---|---|---|
| CPI (1980=100) | 334.91 | 0.6 | 0.0 |
| CPIF (1987=100) | 218.93 | 0.6 | 0.0 |
| CPIF-XE (1987=100) | 208.18 | 0.6 | 1.2 |
- Prices were higher compared with April in several product groups
- Prices on food continued to increase, especially on meat and fruits
- Low prices on fuel and electricity persisted, but rose slightly
- 2.9 percent of the basket was imputed due to absence of consumption
Price returns primarily affected the CPIF in May
The CPIF rose by 0.6 percent between April and May. This is the largest monthly change in May since 2001. In the corresponding period a year ago, the CPIF increased by 0.3 percent.
The main contribution to the CPIF monthly rate came from price returns. Prices on recreation and culture, clothing, restaurants and hotels, electricity, and operation of personal transport equipment increased after downturns in April. Prices on food and non-alcoholic beverages continued to rise.
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 May 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) | 0.4 | 0.1 |
| Clothing (03.1) | 3.0 | 0.1 |
| Electricity (04.5.1) | 1.6 | 0.1 |
| Operation on personal transport equipment (07.2) | 1.5 | 0.1 |
| Recreation and culture (09) | 1.4 | 0.2 |
| Restaurants and hotels (11) | 1.1 | 0.1 |
Seasonal patterns and temporary price changes
Price changes for goods and services may be seasonal or temporary. The figure above shows effects on a monthly basis for the goods and services that effected the CPIF the most. Electricity prices rose in May, while they fell in the same period in the last two years. Prices on recreational and cultural services, including books and magazines, video and computer games, and TV services increased more in May 2020 than in the same period in the past two years. Prices of restaurants and accommodation services also increased in May, although not as much as in the same period a year ago.
Contribution to inflation rate in May
The inflation rate according to the CPIF, that is, the change in the CPIF over the past 12-month period, was 0.0 percent in May 2020, up from -0.4 percent in April.
The largest contribution to the inflation rate in May 2020 came from higher prices on food, especially on meat and fruits. Higher prices in restaurants, miscellaneous goods and services, and housing also resulted in upward contributions to the inflation rate. This was mainly offset by falling prices on electricity and fuel. Prices on clothes and shoes, telecommunications equipment and accommodation services also decreased.
| Name (Coicop) | Yearly change, percent | Yearly change effect, percentage points |
|---|---|---|
| Food (01.1) | 4.0 | 0.5 |
| Clothing and footwear (03) | ‑3.3 | ‑0.2 |
| Electricity (04.5.1) | ‑13.9 | ‑0.6 |
| Rented and housing co-operative dwellings: rent incl. heating (04.S) | 1.5 | 0.2 |
| Housing (04.x) | 3.0 | 0.2 |
| Fuel (07.2.2) | ‑20.7 | ‑0.6 |
| Telecommunications equipment (08.2) | ‑14.0 | ‑0.2 |
| Restaurants (11.1) | 2.9 | 0.2 |
| Accommodation services (11.2) | ‑17.0 | ‑0.2 |
| Misc. Goods and services (12) | 2.7 | 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.
Next publishing will be
2020-07-14 at 9:30.
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.