Sweden's consumer price inflation decelerated more sharply than anticipated in August, reaching its lowest level in over three years, according to data released by Statistics Sweden on Thursday.
The Consumer Price Index (CPI) rose by 1.9% year-over-year in August, a notable slowdown from the 2.6% increase recorded in July. Economists had forecasted a more modest decrease to 2.1%.
This marks the weakest inflation rate since July 2021, when prices had increased by just 1.4%.
Additionally, data indicated that the Consumer Price Index with a fixed interest rate (CPIF) grew at an annual rate of 1.3% in August, compared to 2.3% in the previous month. Notably, inflation remained below the Riksbank's target of 2.0%.
The annual price growth in housing and utilities eased to 4.5% from 6.3%. Lower electricity prices partially offset the overall higher housing costs, as reported by the agency.
Healthcare costs also rose at a slower rate of 5.7%, down from 6.2% in July. Meanwhile, transport costs decreased by 1.6%, driven by a sharp 20.5% drop in fuel costs.
On a month-to-month basis, consumer prices decreased by 0.6% in August, reversing a slight 0.1% increase in July.
