Inflation falls to 9.3 percent in June according to Statistics Sweden

On Friday, Statistics Sweden presented new inflation statistics. The figures show inflation of 9.3 percent, which means a decrease of 0.4 percentage points since May. Inflation has fallen by a total of 2.4 percentage points this year.

– In June, prices increased for some summer-related services. For example, the prices for package tours, international flights and car rentals rose, says Sofie Öhman, price statistician at Statistics Sweden in a press release.

The inflation rate in June was primarily affected by increased interest costs, which contributed 3.1 percentage points. In the past year, food prices have also increased, with above all higher prices for vegetables as well as sweets and ice cream contributing to the rate of inflation.

Lower prices for fuel and electricity dampened the price increase somewhat.

The reduction is less than expected. Analysts on average had expected inflation in June to fall back to 9.0 percent, according to a compilation of forecasts made by Bloomberg.

The goods and services that increased the most

Here are the goods and services that increased the most in price during June

Package tours +27.3 percent

International flights +21.7 percent

Car rental +20.7 percent

Electricity +8.7 percent

Fuel +3.6 percent

Interest cost condominium +3.1 percent

Interest cost own home 2.7 percent

Source: Statistics Sweden

Fact: This is how inflation is measured

The most common measure for inflation and compensation calculations in Sweden is the CPI, consumer price index. The index measures the average price development for all private domestic consumption, including energy prices and interest rate changes.

Statistics Norway (SCB) also calculates a measure where the effects of interest rate changes are removed, CPIF (CPI with fixed interest rate). Since 2017, CPIF has been the Riksbank’s target variable for inflation, and their inflation target is 2.0 percent.

A third measure of inflation is CPIF excluding energy. It is also called underlying inflation.

Source: Statistics Sweden

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