FX.co ★ Sweden Inflation Rate Confirmed at 0.2%

Sweden's year-on-year inflation rate moderated to 0.2% in May 2025, aligning with preliminary estimates and down from 0.3% recorded in April. This represents the lowest inflation level since November 2020, marking the tenth consecutive month that inflation has stayed beneath the Swedish central bank, Riksbank’s target of 2%. The primary factors contributing to this decrease were ongoing deflation in the housing and utilities sector, which saw a decrease of 3%, slightly improved from April’s 3.7% drop. This was largely due to reduced interest costs for tenant-owned apartments and owner-occupied homes. Additionally, transport prices continued their downward trend at a rate of 4.4%, a significant drop from the previous month's 1.6%, largely influenced by declining fuel prices. Price increases also decelerated for food and non-alcoholic beverages, which grew at 5.2%, down from 5.5%, as well as for recreation and culture, which rose by 0.8%, compared to 1.2%. Miscellaneous goods and services saw a slight slowdown in price growth to 4.1% from 4.3%. Conversely, the CPIF (Consumer Price Index with Fixed Interest Rate), which is the Riksbank’s favored gauge for inflation, remained unchanged at 2.3% for the third consecutive period in May. On a monthly basis, the Consumer Price Index (CPI) increased by 0.1%, consistent with the growth observed in April.