Inflation rate in Sweden drops to 1.1% as KPIF measure is updated

Inflation measurement can be complex, and one key indicator in Sweden is the KPIF, which reflects the same price trends as the CPI but excludes the direct effects of changing monetary policy. The KPIF is the target measure for the Swedish central bank, Riksbanken, in regard to its inflation objective.

Two additional inflation metrics calculated by Statistics Sweden (SCB) on behalf of Riksbanken are KPIF excluding energy (KPIF-XE) and KPIF with constant taxes (KPIF-KS). The KPIF-XE measure excludes energy products from the KPIF calculations, while the KPIF-KS maintains consistent taxes and subsidies associated with the products in the KPIF.

Recently, there has been a decline in the rapid inflation rate as the SCB released a new inflation measure. As of October 2024, the KPIF recorded a decrease, reaching an inflation rate of 1.1%.