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Consumer Price Index (CPI), August 2021

Inflation rate was 2.4 percent in August 2021

Statistical news from Statistics Sweden 2021-09-14 9.30

The CPIF (Consumer Price Index with fixed interest rate) 12-month inflation rate was 2.4 percent in August 2021, up from 1.7 percent in July. On a monthly basis, the inflation rate according to the CPIF rose by 0.5 percent between July and August.

“The inflation rate increased in August, a development that can be explained by rising prices for a number of goods and services, such as fuel, and clothing and footwear,” says Mikael Nordin, statistician at Statistics Sweden.

In brief

Index, monthly and yearly changes for CPI, CPIF, and CPIF-XE
  Index
Numbers
Monthly
changes,
percent
Annual
changes,
percent
CPI (1980=100) 343.99 0.5 2.1
CPIF (1987=100) 225.53 0.5 2.4
CPIF-XE (1987=100) 211.51 0.3 1.4

  • Prices increased on a number of goods and services, such as energy products, and clothing and footwear
  • Some product groups, such as car rental, noted smaller declines in prices in August 2021 compared with the same period a year ago, which affected the inflation rate upwards
  • The inflation rate, according to CPIF exclusive energy, increased from 0.5 percent in July to 1.4 percent in August

Prices rose on a number of goods and services

The CPIF increased by 0.5 percent from July to August. In the corresponding period a year ago, the CPIF decreased by 0.1 percent.

The main contribution to the CPIF monthly rate came from rising prices on electricity and fuel. The group furnishings and household equipment also made upward contributions, chiefly from rising prices on furniture. Prices on clothing and footwear increased in August, which is seasonally normal. Prices for miscellaneous goods and services also increased in August 2021.

The table below shows changes on a monthly basis and contributions to the CPIF based on the goods and services that had the greatest impact on the CPIF in August 2021. The results are presented by COICOP category. COICOP refers to the United Nations classification of household consumption expenditure.

Monthly contributions to the CPIF for goods and services
Category (Coicop) Monthly
changes,
percent
Contribution to CPIF
Monthly change,
percentage points
Clothing and footwear (03) 2.3 0.1
Electricity (04.5.1) 4.0 0.2
Furnishings and household equipment (05) 1.2 0.1
Fuel (07.2.2) 2.6 0.1
Miscellaneous goods and services (12) 1.3 0.1

The monthly change in the last three years, by the goods and services that had the largest impact on the CPIF in August 2021

diagram; The monthly change in the last three years, by the goods and services that had the largest impact on the CPIF in August 2021

Seasonal patterns and temporary price changes

Price changes on goods and services may be seasonal or temporary. The figure above shows the monthly changes this year and in the two most recent years for the goods and services with the largest impact on the CPIF.

Prices for clothing and footwear rose in August 2021, although somewhat less than in the corresponding period in 2019. Electricity prices have also increased for the past three years in August, with a particularly large monthly change in 2020.

Fuel prices increased in August 2021, in contrast to the corresponding period in the past two years, when prices declined. In August, a new standard petrol was introduced that contains up to 10 percent ethanol by volume. Previously, petrol did not exceed 5 percent ethanol by volume. To account for the lower energy level associated with the new standard, a quality adjustment was made to the product group gasoline 95 octane.

Furnishings and household equipment, and miscellaneous goods and services also noted rising prices in August 2021 that exceeded the monthly change in the past two years in the corresponding period. During the past three years, prices on rental cars have decreased in August. The price decrease in August 2020 was particularly large compared with August 2021, which led to an upward contribution to the inflation rate this period.

Contribution to the inflation rate in August

The inflation rate according to the CPIF, that is, the change in the CPIF compared to the corresponding month last year, was 2.4 percent in August 2021, up from 1.7 percent in July.

The inflation rate was mainly affected by rising housing costs, in which higher electricity prices was the key driver. Furthermore, timber prices, which form part of the depreciation group, continued to increase in August and almost doubled compared with the same month last year. Transport prices also noted a positive annual rate, which can be explained mainly by rising fuel prices. Clothing and footwear continued to record a relatively high annual rate in August 2021.

These price increases were offset by falling prices on medical products, appliances and equipment, in which the main downward contribution came from eyeglasses. Audio-visual, photographic and information processing equipment, and communication also made downward contributions on the inflation rate.

The inflation rate according to the CPIF excluding energy was 1.4 percent in August, up from 0.5 percent in July.

Effects on a yearly basis on the goods and services that most affected the inflation rate
Category (Coicop) Yearly change,
percent
Contribution
yearly change
CPIF
percentage points
Clothing and footwear (03) 4.7 0.2
Housing (04) 5.0 1.2
Electricity (04.5.1) 16.4 0.6
Medical products, appliances and equipment (06.1) ‑8.1 ‑0.2
Transport (07) 6.4 0.8
Fuel (07.2.2) 20.6 0.5
Communication (08.2) ‑14.0 ‑0.2
Audio-visual, photographic and information processing equipment (09.1) ‑11.4 ‑0.3

Other measures of inflation

Statistics Sweden calculates different inflation measures for different purposes. The CPIF is the Riksbank’s target variable, while the CPI is the measure used for purposes of compensation.

Measures of inflation
Consumer Price Index (CPI), August 2021

Effects of the coronavirus pandemic on calculations

As a result of the coronavirus pandemic, some services in the CPIF basket were unavailable for consumers to purchase in August. As in previous months, prices for these services have been imputed. The share of imputed prices was 0.13 percent in August. For further information, see the document “Special imputations during the coronavirus pandemic”.

Special imputations during the coronavirus pandemic (pdf)

Definitions and explanations

The CPIF shows the same price trend as the CPI, but without the direct effects of a changed monetary policy. The CPIF is the Riksbank’s target variable for the inflation target.

The CPIF excluding energy (CPIF-XE) and the CPIF with constant tax (CPIF-CT) are two other measures of inflation produced by Statistics Sweden on behalf of the Riksbank. In the CPIF-XE, energy products are excluded from the CPIF, while in the CPIF-CT the taxes and subsidies associated with the products in the CPIF are kept constant.

The HICP (Harmonised Index of Consumer Prices) is produced by all EU Member States. This measure has a somewhat smaller coverage than the CPI and the CPIF, mainly because parts of households’ housing costs are omitted.

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2021-10-14 at 9:30.

Statistical Database

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Statistics Sweden, Price Statistics

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Enquiries

Mikael Nordin

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E-mail
mikael.nordin@scb.se

Beatrice Ljung

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