Sweden's Inflation Rate Falls to 2.1% in December, Reflecting Economic Stabilization

Sweden’s inflation rate, measured by the Consumer Price Index with fixed mortgage rates (KPIF), decreased to 2.1% in December 2025, according to data released by Statistiska centralbyrån (SCB). This figure aligns with SCB's preliminary calculations from the prior week and indicates a near-target inflation level as set by Riksbanken, the Swedish central bank. The KPIF measure specifically excludes mortgage rate effects, making it the central bank's preferred benchmark, which aims for an annual price increase of 2%.

Key factors driving down inflation include lower prices for gasoline and furniture, which have exerted downward pressure on the overall inflation rate. This easing signals a stabilization in consumer prices following previous inflationary pressures in Sweden's economy.

In a broader economic context, Sweden has also seen improvements in its labor market, with the unemployment rate falling to 6.8% by the end of December 2025. Approximately 360,000 individuals were registered unemployed, down from 376,000 and 7.1% unemployment a year earlier, highlighting a positive trend in economic recovery and potential consumer confidence.

These developments suggest a cautiously optimistic economic outlook for Sweden as inflation approaches the central bank’s target and employment conditions improve. However, the central bank is likely to continue monitoring inflation trends carefully to maintain price stability and support sustainable economic growth.