Swedish Inflation Confirmed At 0.2%

(RTTNews) - Sweden's consumer price inflation eased as initially expected in May to the lowest level in four-and-a-half years, the latest data from Statistics Sweden showed on Friday.

The consumer price index, or CPI, rose 0.2 percent year-over-year in May, slightly slower than the 0.3 percent increase in April. That was in line with the flash data published on June 5.

Further, this was the lowest inflation rate since November 2020, when prices had risen the same 0.2 percent.

Data showed that the consumer price index with a fixed interest rate, or CPIF, increased at a stable pace of 2.3 percent annually in May, as estimated. Moreover, the inflation is above the Riksbank's target of 2.0 percent.

"Higher prices for electricity were offset by decreasing interest expenses, which contributed to a lower inflation rate in May," Carl Martensson, statistician at Statistics Sweden, said.

Transport costs fell 4.4 percent as fuel prices continued to decline sharply by 15.6 percent annually in May, and housing and utility costs were down 3.0 percent. Meanwhile, electricity prices were 10.3 percent more expensive.

Month-on-month, consumer prices edged up 0.1 percent, the same as in April.