• The interest rates for household’s mortgages rose and contributed with 3.2 percentage points to the annual inflation rate according to CPI.
• Food and energy prices continued to decrease in May.
• Prices increased for a broad set of goods and services, for instance hotel and restaurant visits, recreational services, and clothing.
• The annual inflation rate according to CPIF excluding energy decreased from 8.4 percent in April to 8.2 percent in May.

Continued decrease in food prices

The CPI increased by 0.3 percent from April to May. In the corresponding period a year ago, prices increased by 1.0 percent.

Interest expenses continued to increase in May which they have done since the beginning of 2022. Prices for goods and services within recreation and culture did also increase and the primary contribution came from other recreational items and package holidays. Furthermore, prices increased for clothing, hotel- and restaurant visits.

The price increase was offset by food prices which fell by 0.4 percent. Prices for electricity and fuel did also decrease in May.

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 May 2023. The results are presented by COICOP category. COICOP refers to the United Nations classification of household consumption expenditure.

Contributions to the inflation rate in May

The inflation rate according to CPI, that is, the change in CPI from the same month of the previous year, was 9.7 percent in May 2023. This is a decrease from April when the inflation rate was 10.5 percent.

The inflation rate was affected by higher interest expenses, both for owner-occupied homes and tenant owned apartments, which contributed with 3.2 percentage points. Previous month the corresponding contribution was 3.0 percentage points. Food prices have also increased during the past year, where the primary contributions to the inflation rate came from milk, cheese and eggs.

Fees for rented and housing co-operative dwellings rose by 4,0 percent compared to May 2022. Transport prices, in which prices on cars and transport services where the main contributions, also increased in May.

Additional contributions to the positive inflation rate came from clothing, household goods, recreational services, hotel- and restaurant visits as well as miscellaneous goods and services.

The price increases were offset by decreased prices on electricity and fuel.

The inflation rate according to the CPIF, which unlike CPI is not affected by changes in mortgage interest rates, was 6.7 percent in May. This is a decrease compared to April when it was 7.6 percent.

The inflation rate calculated excluding energy products (CPIF-XE) was 8.2 percent in May, which is a decrease compared to April when it was 8.4 percent.

CPI and CPIF, two different measures of inflation

As from the publication of CPI regarding February 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.