Package tours became 16 percent more expensive in July than in June, which was a strongly contributing factor to the increase in inflation.
It's not extremely unusual, the most important thing about this outcome, it's the direction, says chief economist Alexandra Stråberg at Länsförsäkringar about the price increase for trips and at the same time notes that clothing prices fell.
Summer inflation
Susanne Spector is mostly surprised that food prices rose so much, 1.1 percent in July compared to June, largely due to summer luxury such as ice cream, candy and soft drinks.
There is some summer inflation in the figures, she says.
According to SCB, it was mainly more expensive package tours, car rentals and food that lifted the general price increase between June and July.
Food costs are what feels almost most in households, says Alexandra Stråberg.
No reduction now
She says that today's detailed inflation figures further confirm the picture that the Swedish Central Bank will not lower the interest rate next week.
One wants to see a downward direction to feel safe to lower the interest rate and we have no clear trend, but inflation seems to have stalled around 3 percent.
Susanne Spector agrees. She believes, unlike several other assessors, that there will be no interest rate cut later this year either. But if the weak Swedish economy does not take off, it may cause the Swedish Central Bank to lower it later in the autumn.
What is usually meant by inflation is the price changes on an annual basis.
In July, the general price level was 3.0 percent higher than in July last year, according to the Swedish Central Bank's measure KPIF, which is cleared of interest rate effects. This can be compared to the inflation rate of 2.8 percent in June and the Swedish Central Bank's target of 2.0 percent.
Including the lower interest rates, inflation (KPI) in July was 0.8 percent.
What has primarily become more expensive in a year is the electricity price, plus 8.6 percent. Food has risen in price by 5.1 percent, while rents have increased by 4-5 percent.
In the other direction, interest rates on villas and condominiums have plummeted by 23-26 percent in a year. Gasoline has become 15 percent cheaper.
Source: SCB
