Consumer Price Index (CPI), December 2020
Inflation rate was 0.5 percent in December 2020
Statistical news from Statistics Sweden 2021-01-15 9.30
The inflation rate according to the CPIF (Consumer Price Index with fixed interest rate) was 0.5 percent in December 2020, up from 0.2 percent in November. The change on a monthly basis between November and December was 0.7 percent.
In brief
- Prices on electricity and transport were higher than in November
- 2.2 percent of the basket was imputed due to absence of consumption
| Index Numbers |
Monthly changes, percent |
Annual changes, percent |
|
|---|---|---|---|
| CPI (1980=100) | 339.34 | 0.7 | 0.5 |
| CPIF (1987=100) | 222.08 | 0.7 | 0.5 |
| CPIF-XE (1987=100) | 210.18 | 0.6 | 1.2 |
Prices on electricity and transport increased in December
The CPIF rose by 0.7 percent from November to December. This is the largest monthly change ever recorded in the month of December. In the corresponding period a year ago, the CPIF increased by 0.4 percent.
The main contribution to the CPIF monthly rate came from rising prices on transport services and operation of vehicles, which are included in the transport category. For instance, prices rose on car rental, rail travel and fuel. Furthermore, prices on electricity rose, and spot prices increased in all electricity areas between November and December.
The table below shows changes on a monthly basis and contributions to the CPIF based on the goods and services that had the largest impact on the CPIF in December 2020. The results are reported per COICOP category; COICOP refers to the United Nations classification of household consumption expenditure.
| Category (Coicop) | Monthly changes, percent |
Contribution to CPIF Monthly change, percentage points |
|---|---|---|
| Electricity (04.5.1) | 4.0 | 0.1 |
| Operation of personal transport equipment (07.2) | 1.2 | 0.1 |
| Transport services (07.3) | 7.6 | 0.2 |
Seasonal patterns and temporary price changes
Price changes on goods and services may be seasonal or temporary. The figure above shows the monthly changes this year and in the two most recent years, for the goods and services with the largest impact on the CPIF monthly change.
Prices on electricity rose in December 2020, contrary to the same period in 2019, when prices fell. In the same period in 2018, prices on electricity increased, although the change on a monthly basis was considerably less than in December 2020. Prices on the operation of vehicles increased in December 2020 and in the same month a year ago, but they decreased in 2018. In addition, prices on transport services rose in December, which is seasonally normal.
Prices on electricity and fuel rose but were still lower than last year
The inflation rate according to the CPIF, that is, the change in the CPIF over the past 12-month period, was 0.5 percent in December 2020. The inflation rate rose from 0.2 percent in November.
The inflation rate was affected mainly by rising housing costs. Prices also increased on miscellaneous goods and services.
The price increases were offset mainly by lower prices on electricity and fuel. Despite price increases from November to December, prices on electricity and fuel remained lower than in the same period a year ago. In addition, falling prices on telecommunications equipment had a downward effect.
The inflation rate according to the CPIF excluding energy was 1.2 percent in December, up from 1.1 percent in November.
| Yearly change, percent | Contribution yearly change CPIF percentage points | |
|---|---|---|
| Electricity (04.5.1) | ‑6.7 | ‑0.3 |
| Rented and housing co-operative dwellings: rent incl. heating (04.S) | 1.6 | 0.2 |
| Housing (04.x) | 3.8 | 0.2 |
| Fuel (07.2.2) | ‑10.1 | ‑0.3 |
| Telecommunications equipment (08.2) | ‑11.6 | ‑0.2 |
| Misc. Goods and services (12) | 2.7 | 0.2 |
Other 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.
Effects of the coronavirus pandemic on calculations
As a result of the coronavirus pandemic, some services in the CPIF basket were unavailable to consumers to purchase in December. As in previous months, prices for these services have been imputed. The share of imputed prices increased from 1.8 percent of the CPIF basket in November to 2.2 percent in December. For further information see:
Meausurement issues related to the coronavirus pandemic (pdf)
Changes in 2021
Some changes in the production of the Consumer Price Index will be introduced from 2021. For further information, please see:
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
2021-02-18 at 9:30.
Statistical Database
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