Inflation

Inflation Rises: KPIF Reaches 2.9% in February 2025

The latest inflation report from SCB shows that inflation, measured by the Consumer Price Index with fixed interest (KPIF), has increased to 2.9% in February 2025. This is a significant rise from January when the figure was 2.2%. At the same time, the underlying CPI inflation is at 1.3%, which is also an increase from the previous month.

Riksbank's Decision and Economic Forecasts

This rise in KPIF means that inflation is once again above the Riksbank's target of 2%. This may affect the Riksbank's decisions regarding the repo rate, which was recently lowered to 2.25%. Historically, we have seen that when inflation rises, the Riksbank tends to adjust the interest rate to keep inflation in check.

Economic experts predict that the Riksbank may raise the interest rate again if inflation continues to rise. This would impact borrowers, especially those with mortgage loans and personal loans.

Mortgage Calculation: What Does Your Loan Cost?

With a repo rate of 2.25% and an assumed bank margin of 1%, we can estimate the costs of mortgage loans:

• For a mortgage of 1 million kronor: 3.25% interest results in a monthly cost of approximately 2,708 SEK.
• For a mortgage of 3 million kronor: 3.25% interest results in a monthly cost of approximately 8,125 SEK.
• For a mortgage of 5 million kronor: 3.25% interest results in a monthly cost of approximately 13,542 SEK.

It is important to note that these figures are estimates and may vary depending on the individual terms and fees of the banks.

Effects on Food Prices, Fuel Prices, and Energy Prices

Inflation also affects everyday costs such as food prices, fuel prices, and energy prices. A continued increase in inflation could lead to higher costs for these goods and services. Consumers should be prepared to see an increase in their daily expenses.

Future Prospects

With the current trend, we can expect the Riksbank to closely monitor the inflation development. If inflation continues to rise, we may see further adjustments to the repo rate in the coming months. This will be of great importance for both borrowers and consumers in Sweden.

In summary, while the recent increase in KPIF may cause concern, it is important to keep an eye on the Riksbank's upcoming decisions and how these may affect the economic situation for Swedish households.