Inflation according to the KPIF measure fell to 1.5 percent in December, down from 1.8 percent in November, according to Statistics Sweden (SCB). The decline was in line with a preliminary calculation of December inflation, published by SCB last week. In the KPIF measure, the effects of mortgage rates have been removed.
"Falling energy prices contributed to a lower inflation rate in December," says Carl Mårtensson, price statistician at SCB, according to a press release.
Electricity has fallen by almost seven percent. But also lower fuel prices, down 13 percent over the year, are pushing down the inflation rate, the cumulative price changes on an annual basis. And the Swedish Central Bank's interest rate cuts are making mortgages cheaper.
On the other hand, rents are still rising, up almost five percent over the year, as are monthly fees for condominium owners. Food prices, including non-alcoholic beverages, have risen by 1.7 percent.
Culture has also become more expensive, where TV, film, and music services have increased the most in price, according to SCB.
If one includes all consumer prices in SCB's basket, including mortgage rates, inflation was halved in December to 0.8 percent.
The so-called core inflation, KPIF excluding energy prices, fell to 2.0 percent. In the previous calculation, this inflation measure was 2.1 percent.
