Swedish Inflation Rises to 2.8% in June 2025, Driven by Travel and Food Prices
Inflation in Sweden increases to 2.8% in June 2025 due to rising travel and food prices, amid a challenging economic outlook.
Key Points
- • Inflation rose to 2.8% in June from 2.3% in May.
- • Key drivers were package travel and food prices, particularly fresh produce.
- • Electricity prices dropped by 6.3%, contrasting with the trend in other sectors.
- • Economists suggest potential delays in Riksbank interest rate cuts due to inflation volatility.
Sweden's inflation rate has seen an uptick to 2.8% in June 2025, a rise from 2.3% in May, primarily driven by increased prices for package travel and car rentals during the summer season. The latest figures released by Statistiska centralbyrån (SCB) reflect a 0.5% price increment from May to June, contrasting with a 0.1% price decline during the same period in the previous year. Filip Hellberg, a price statistician at SCB, indicated that while many goods experienced price surges, prices for electricity decreased significantly by 6.3% from May to June.
Additionally, food prices played a crucial role in this inflation, with notable hikes for fresh berries and leeks, rising by 16.9% and 16.7%, respectively. The year-on-year comparison shows food prices increased by 5.3%. Economists express varied interpretations of these inflation data, suggesting that the volatility may delay interest rate cuts by the Riksbank. Chief economist Alexandra Stråberg noted that the situation could lead to sustained rates as further consistent data is awaited.
Despite the inflation rise, the outlook for Sweden's economy remains gloomy, likened to its "sun-poor" summer weather, indicating deeper economic challenges. Meanwhile, Swedbank's chief economist described the figures as a mixed outcome, hinting that the likely decision to maintain current interest rates until more stable trends are observed could benefit future economic planning.