Swedish Inflation Slows To 10-Month Low Of 9.7%

(RTTNews) - Sweden's consumer price inflation eased for the third straight month in May amid a slowdown in the price growth of food products and a sharp fall in electricity costs, data from Statistics Sweden showed on Wednesday.

The consumer price index rose 9.7 percent year-over-year in May, slower than the 10.5 percent increase in April. Economists had forecast inflation to moderate to 9.4 percent.

The latest inflation rate was the lowest since July 2022, when prices had risen 8.5 percent.

Data showed that the consumer price index with a fixed interest rate increased at a slower pace of 6.7 percent annually in May, following a 7.6 percent gain in April, as expected.

The overall inflation rate was affected by higher interest expenses, both for owner-occupied homes and tenant-owned apartments, which contributed 3.2 percentage points, the agency said.

The annual price growth for food and non-alcoholic beverages eased to 14.8 percent in May from 16.9 percent in the previous month.  

Costs for furnishings and household goods showed double-digit growth of 10.4 percent, and those for hotels and restaurants grew by 9.2 percent.

On the other hand, electricity prices plunged 12.5 percent from last year.

Month-on-month, consumer prices rose 0.3 percent in May, following a 0.5 percent gain in the prior month. Meanwhile, prices were expected to be flat. Similarly, the CPIF edged up 0.1 percent versus a forecast of a 0.2 percent decrease.