Consumer Price Index (CPI), June 2023
Inflation rate according to CPI was 9.3 percent in June 2023
Statistical news from Statistics Sweden 2023-07-14 8.00
The CPI 12-month inflation rate was 9.3 percent in June 2023, down from 9.7 percent in May. On a monthly basis, the inflation rate according to the CPI increased by 1.1 percent from May to June. The CPIF (Consumer price Index with fixed interest rate) 12-month inflation rate was 6.4 percent in June.
“In June, we saw increased prices in a few summer related services. For instance, package holidays, international flights and car rentals rose in price”, says Sofie Öhman, statistician at Statistics Sweden.
The price base amount has been calculated at SEK 57 300 for 2024. This is an increase of SEK 4 800 compared with the price base amount from 2023. For further information, please see the separate statistical news:
In brief
| Index Numbers |
Monthly changes, percent |
Annual changes, percent |
|
|---|---|---|---|
| CPI (1980=100) | 405.49 | 1.1 | 9.3 |
| CPIF (1987=100) | 258.12 | 0.9 | 6.4 |
| CPIF-XE (1987=100) | 241.72 | 0.6 | 8.1 |
- The interest rates for household’s mortgages rose and contributed with 3.1 percentage points to the annual inflation rate according to CPI.
- International flight prices increased by 31.4 percent compared to June 2022.
- There was a rise in electricity prices by 8.7 percent from May to June.
- The annual inflation rate according to CPIF excluding energy decreased from 8.2 percent in May to 8.1 percent in June.
Travelling more expensive in June
The CPI increased by 1.1 percent from May to June. In the corresponding period a year ago, prices increased by 1.4 percent.
In June, interest expenses continued their upward trend, as they have done since the beginning of 2022. Additionally, there was a notable increase in electricity prices which together with the rising interest expenses contributed to an increase in the housing costs.
There were price increases for goods and services related to recreation and culture, primarily driven by package holidays. Also, price increases were noted for fuel, car rental and international flights from May to June.
The price increase was partially offset by a decrease in clothing prices, which fell by 4.2 percent.
The table below shows changes on a monthly basis and contributions to the CPI based on the goods and services that had the greatest impact on the CPI in June 2023. The results are presented by COICOP category. COICOP refers to the United Nations classification of household consumption expenditure.
| Category (Coicop) | Monthly changes, percent |
Contribution to CPI Monthly change, percentage points |
|---|---|---|
| Clothing (03.1) | ‑4.2 | ‑0.1 |
| Electricity (04.5.1) | 8.7 | 0.3 |
| Interest expense, owner occupied-housing (part of 04.x) | 2.7 | 0.1 |
| Interest expense, tenant-owned apartments (part of 04.y) | 3.1 | 0.1 |
| Fuel (07.2.2) | 3.6 | 0.1 |
| Car rentals (part of 07.2.4) | 20.7 | 0.1 |
| International flights (part of 07.3) | 21.7 | 0.1 |
| Package holidays (09.6) | 27.3 | 0.3 |
Contributions to the inflation rate in June
The inflation rate according to CPI, that is the change in CPI from the same month of the previous year, was 9.3 percent in June 2023. This is a decrease from May when the inflation rate was 9.7 percent.
The inflation rate was primarily affected by higher interest expenses for both owner-occupied homes and tenant owned apartments, resulting in a contribution of 3.1 percentage points. Additionally, food prices have risen over the past year, with vegetables as well as the group sugar, jam, honey, chocolate, and confectionary being the primary contributors.
During the past year, hotel- and restaurant visits experienced an upward trend in price. Also, fees for rented and housing co-operative dwellings saw an increase by 4.2 percent compared to June 2022.
There have been general price increases on goods and services related to recreation and culture, where package holidays had the largest impact. Furthermore, the prices of international flights rose by 31.4 percent compared to June 2022.
Additional contributions to the positive inflation rate came from clothing and shoes as well as furnishings and household goods. Moreover, increased prices for miscellaneous goods and services also contributed, primarily explained by rising prices within the group personal care.
The price increases were offset by decreased prices of electricity and fuel.
The inflation rate according to the CPIF, which unlike CPI is not affected by changes in mortgage interest rates, was 6.4 percent in June. This is a decrease compared to May when it was 6.7 percent.
The inflation rate calculated excluding energy products (CPIF-XE) was 8.1 percent in June, which is a decrease compared to May when it was 8.2 percent.
| Category (Coicop) | Yearly change, percent |
Contribution yearly change CPI percentage points |
|---|---|---|
| Food (01.1) | 13.0 | 1.5 |
| Clothing and footwear (03) | 6.3 | 0.3 |
| Electricity (04.5.1) | ‑10.8 | ‑0.4 |
| Actual rentals for housing (04.S) | 4.2 | 0.4 |
| Interest expense, owner occupied-housing (part of 04.x) | 88.4 | 1.8 |
| Interest expense, tenant-owned apartments (part of 04.y) | 102.3 | 1.3 |
| Furnishings and household goods (05) | 8.2 | 0.4 |
| Fuel (07.2.2) | ‑16.1 | ‑0.7 |
| International flights (part of 07.3) | 31.4 | 0.3 |
| Other recreational items and equipment, gardens and pets (09.3) | 11.3 | 0.3 |
| Recreational and cultural services (09.4) | 6.2 | 0.4 |
| Package holidays (09.6) | 14.4 | 0.5 |
| Restaurants and hotels (11) | 8.1 | 0.9 |
| Miscellaneous goods and services (12) | 6.1 | 0.4 |
CPI and CPIF, two different measures of inflation
As from the publication of CPI regarding February 2023, the statistical news will shift the main focus from CPIF to CPI. This affects the title and the introduction, but also the tables and diagrams that are presented. CPIF will continue to be presented in the statistical news. The reason behind the change in the statistical news is an increased interest in the general price trend in Sweden as shown by the CPI.
CPI and CPIF are two different measures of inflation that Statistics Sweden calculates. The most common measure of inflation in Sweden is the change in the Consumer Price Index (CPI), but it is the CPIF that is the measure that the Riksbank uses in its inflation target. The CPIF includes the same goods and services as the CPI. The difference between CPI and CPIF is that in CPIF, interest rates for households’ mortgages are kept constant. This means that the effect of changes in interest rates for households’ mortgages is only captured in the CPI and not in the CPIF.
Different 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.
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
2023-08-15 at 8:00.
Statistical Database
More information is available in the Statistical Database
Feel free to use the facts from this statistical news but remember to state Source: Statistics Sweden.