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Consumer Price Index (CPI), July 2020

The inflation rate was 0.5 percent in July 2020

Statistical news from Statistics Sweden 2020-08-12 9.30

The inflation rate according to the CPIF (Consumer Price Index with fixed interest rate) was 0.5 percent in July 2020, down from 0.7 percent in June. This decrease is mainly explained by lower prices on electricity. The change on a monthly basis between June and July was 0.2 percent.

In brief

  • The inflation rate according to CPIF, excluding energy, rose from 1.3 percent to 1.5 percent.
  • Prices on rental cars continued to rise.
  • Prices on package holidays were low as traveling resumed in late July.
  • 1.3 percent of the basket was imputed due to absence of consumption.
Index, monthly and yearly changes for CPI, CPIF, and CPIF-XE
Index Numbers Monthly
changes,
percent
Annual
changes,
percent
CPI (1980=100) 337.57 0.2 0.5
CPIF (1987=100) 220.64 0.2 0.5
CPIF-XE (1987=100) 209.73 0.4 1.5

Price on rental cars continued to increase

The CPIF rose by 0.2 percent between June and July. In the corresponding period a year ago, the CPIF increased by 0.4 percent.

The main contribution to the CPIF monthly rate came from price increases on rental cars. Higher prices on food, in particular vegetables, also contributed to the increase. Higher prices on fuel and recreational services, such exercise services, also contributed to the rise in the CPIF.

Lower prices on electricity, clothing and dental care partially offset the upward contribution to the change.

The table below shows changes on a monthly basis and contributions to the CPIF based on the goods and services that had the largest impact on the CPIF in July 2020. The results are reported per COICOP category; COICOP refers to the United Nations classification of household consumption expenditure.

Monthly contributions to the CPIF for goods and services
Name(Coicop)Monthly
changes,
percent
Contribution to CPIF
Monthly change,
percentage points
Food non-alcoholic beverages (01) 1.0 0.1
Vegetables (01.1.7) 3.4 0.1
Clothing (03.1) ‑4.4 ‑0.2
Electricity (04.5.1) ‑6.5 ‑0.2
Dental Care (06.2) ‑18.7 ‑0.2
Fuel (07.2.2) 2.3 0.1
Car rental (07.2.4) 39.6 0.2
Rectreational and cultural services (09.4) 1.2 0.1

Contributions on the monthly change to the CPIF in July 2018–2020 on the goods and services that had the largest impact on the CPIF

Graph: Effect on the monthly change in CPIF in July 2018-2020 on the goods and services that had the largest effect on the CPIF.

Seasonal patterns and temporary price changes

Price changes on goods and services may be seasonal or temporary. The figure above shows contributions on a monthly basis for the goods and services with the largest impact on the CPIF.

Prices for food and non-alcoholic beverages rose in July, but contributed less than in the same period in 2019. Prices on rental cars usually rise somewhat in July, but rose considerably more than usual this year.

The price index on dental care fell as a result of the renewal of the general dental care allowance. This price index has decreased in July ever since Statistics Sweden changed its calculation method on dental care in 2019. Prices on clothing usually fall in July due to annual summer sales, but this contribution to a decrease to the CPIF was only minor this year.

Lower prices on energy and package holidays reduced the inflation

The inflation rate according to the CPIF, that is, the change in the CPIF over the past 12-month period, was 0.5 percent in July 2020, down from 0.7 percent in June.

The largest contribution to the inflation rate in July 2020 came from higher prices on rental cars. Higher prices on food, clothing, housing costs and restaurants also contributed upwards to the inflation rate.

This increase was mainly offset by falling prices on electricity and fuel, which led to downward contributions of 1 percentage point. Falling prices on cellphones and package holidays also resulted in downwards contributions to the inflation rate. Package holidays resumed in July, following cancelled travel since March. Prices on the package holidays were lower than in the same period last year.

Contribution on a yearly basis on the goods and services that most affected the inflation rate in July
Name(Coicop) Yearly change,
percent
Contribution
yearly change
CPIF
percentage points
Food and non-alcoholic beverage (01) 1.6 0.2
Fruit (0.1.6) 4.4 0.2
Electricity (04.5.1) ‑15.8 ‑0.7
Rented and housing co-operative dwellings: rent incl. heating (04.S) 1.6 0.2
Housing (04.x) 2.7 0.2
Fuel (07.2.2) ‑10.2 ‑0.3
Car rental (07.2.4) 68.0 0.3
Communication (08.2) ‑10.5 ‑0.2
Package Holidays (09.6) ‑8.5 ‑0.2
Restaurants (11.1) 2.2 0.2
Misc. Goods and services (12) 2.5 0.2

Other measures of inflation

Statistics Sweden uses 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), July 2020

Effects of the coronavirus pandemic on calculations

Measures in response to the corona pandemic have led Swedish consumers to adapt parts of their consumption. In some cases, stores have closed, but it remains possible to purchase products elsewhere. In other cases, consumption has ceased completely. These developments make calculating the consumer price index particularly challenging.

Due to a lack of consumption, prices on items such as tickets to sporting events, cinemas, and international travel have been imputed to some degree. For further information about measurement problems related to the coronavirus pandemic, follow the link below.

Meausurement issues related to 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.

Next publishing will be

2020-09-10 at 9:30.

Statistical Database

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