Swedish food prices drop as inflation beats expectations

Inflation in April fell more than expected, according to Statistics Sweden, with the drop even larger once the effect of interest rates is removed from the equation.

Swedish food prices drop as inflation beats expectations
Food prices are still the biggest driver of inflation on a yearly basis. Photo: Janerik Henriksson/TT

According to the consumer price index inflation measurement (CPI inflation), year-on-year inflation dropped to 10.5 percent in April. Analysts had expected this to stay the same as in March, at 10.6 percent, according to a comparison of prognoses carried out by Bloomberg.

Inflation according to the CPIF measurement, which removes rising interest rates on mortgages from the equation, stood at 7.6 percent in April compared with 8 percent in March, with analysts having predicted this would remain at 8 percent.

Underlying inflation, which is CPIF inflation with the cost of high energy prices removed, fell to 8.4 percent in April compared with 8.9 percent in March. Again, this was lower than expected – the average prediction from analysts for April was 8.7 percent.

Price increases in April were also lower than expected compared with the month before. Compared with March, prices went up 0.5 percent in April. This was 0.1 percent less than in March and 0.1 percent less than predicted.

April was also the first month which saw a drop in food prices since November 2021, with a dip of 1.2 percent in April compared to March.

Fruit and vegetables saw the largest price decreases, falling 3.9 percent and 5.4 percent respectively in April.

Cucumbers in particular saw a drop of 31 percent in a month, with a 5 percent drop in the last 12 months.

Despite these falls, food prices are still the largest driver of inflation on a yearly basis, with a price increase of 17.5 percent in the past year.

Member comments

  1. “Swedish food prices drop as inflation beats expectations”. I’m sorry but that is a very misleading headline. The prices for food did not “drop”, they increased by less than in previous months. It’s really poor economics to misinterpret the simplest of financial figures like that.

Log in here to leave a comment.
Become a Member to leave a comment.


Sweden defies recession forecasts as economy sees surprise upturn

Despite still fighting high inflation and interest rates, the Swedish economy grew more than expected in the first quarter of the year.

Sweden defies recession forecasts as economy sees surprise upturn

The top Nordic economy expanded by 0.6 percent in the first three months of the year, avoiding a technical recession following a 0.2 percent contraction in the fourth quarter of 2022.

“The upturn is mainly explained by an increase in inventories and by a strong growth in the export of goods,” Statistics Sweden said in a statement.

Analysts were on average expecting 0.1 percent growth, according to Bloomberg.

A preliminary estimate published by Statistics Sweden at the end of April had put growth at 0.2 percent.

Year-on-year, GDP grew by 0.8 percent in the first quarter of 2022, compared to the 0.3 percent preliminary figure.

The upturn comes despite the central bank’s rate-hike campaign against inflation, which is still hovering around 10 percent.

According to its April forecast, the central bank expects the Swedish economy to contract 0.7 percent for 2023 as a whole.