Record Electricity Price Surge in Sweden Drives Inflation Increase in January 2026

In January 2026, electricity prices in Sweden soared by 21%, marking the highest surge in over a year and significantly contributing to rising inflation rates. According to Statistics Sweden (SCB), the consumer price index (KPI) inflation rose to 0.5% in January from 0.3% in December, with escalating electricity costs and rent increases as key drivers. Mikael Nordin, a price statistician at SCB, highlighted that despite inflationary pressure from these factors, price decreases in other areas such as package tours, car rentals, transport services, clothing, and dental care helped temper the overall inflation impact.

The inflation rate measured by the consumer price index with fixed interest rate (KPIF) recorded 2.0% in January, while KPIF excluding energy reached 1.7%, consistent with previous forecasts. This price movement aligns with typical seasonal January trends, the agency noted.

The January electricity price spike was driven mainly by cold weather and weak winds, causing electricity prices to rise further on a recent Thursday. However, experts have suggested that a potential weather shift could ease the trend, potentially lowering electricity prices as cold conditions abate and wind conditions improve.

This confluence of extreme weather factors and energy market dynamics underlines the sensitivity of Sweden’s inflation to electricity price volatility, impacting household expenses and rental costs alike. The situation remains fluid as meteorological changes may soon influence pricing trends, potentially ameliorating the current cost pressures on consumers.