Sweden’s consumer price inflation eased further in April, reaching its lowest level in over two years, as per data released by Statistics Sweden on Wednesday.
The Consumer Price Index (CPI) increased by 3.9 percent year-over-year in April, down from a 4.1 percent rise in March. This deceleration was slightly below economists' expectations, who had forecasted a drop to 4.0 percent.
Notably, this marks the slowest inflation rate since January 2022, when the index saw a 3.7 percent increase.
Additionally, data revealed that the Consumer Price Index with a fixed interest rate (CPIF) showed a marginally higher annual growth of 2.3 percent in April, compared to 2.2 percent in the previous month. The anticipated rate was 2.4 percent.
Despite the slowdown, inflation remained above the Riksbank's target of 2.0 percent.
The bulk of April's inflation was attributed to increased housing costs, driven mainly by rising mortgage expenses and fees for rented and tenant-owned apartments. However, this was somewhat counterbalanced by a significant 8.7 percent decline in electricity costs compared to the previous year.
Clothing and footwear prices saw an increase of 4.4 percent, albeit slower than the 4.9 percent rise in March. Health-related costs surged by 6.4 percent.
On a monthly basis, consumer prices rose by 0.3 percent in April, following a 0.1 percent increase in the prior month, falling short of the expected 0.4 percent rise. Core consumer prices also experienced a 0.3 percent uptick.
