In July, Sweden's consumer price inflation unexpectedly remained steady after a downward trend spanning the previous five months, according to data released by Statistics Sweden on Wednesday.
The Consumer Price Index (CPI) rose by 2.6% year-over-year in July, mirroring the increase seen in June, which was the lowest level in thirty-three months. Economists had projected a slight increase to 2.8%.
The data highlighted that the Consumer Price Index with a fixed interest rate (CPIF) experienced a quicker annual growth of 1.7% in July, up from 1.3% in the preceding month. However, this rate remained below the Riksbank's target of 2.0%.
Statistics Sweden attributed the overall inflation primarily to higher mortgage costs and increased fees for rented and tenant-owned apartments. These elevated housing costs were partially counterbalanced by reduced electricity prices.
Annual price growth for food and non-alcoholic beverages stayed constant at 1.1%, while growth in housing and utilities accelerated to 6.3% from 5.6%. Meanwhile, fuel costs saw a significant drop of 11.1%.
On a month-to-month basis, consumer prices inched up by 0.1% in July, reversing a 0.1% decline in June.
