Inflation

Inflation in Sweden Stabilizes: KPIF at 2.3% in March 2025

The latest inflation report from SCB shows that inflation according to KPIF (Consumer Price Index with fixed interest) remains stable at 2.3% for March 2025. This marks a return to the same level as in January 2025, following a brief increase in February to 2.9%. Meanwhile, the regular CPI inflation has decreased to 0.5%, which is a significant drop from February when it was 1.3%.

Riksbank's Decision and Economic Forecasts

With the current KPIF inflation just above the Riksbank's target of 2%, we can expect the policy rate to remain stable at 2.25% in the near term. The Riksbank has previously shown a tendency to adjust the rate in line with movements in inflation, but the current stability in KPIF provides little room for drastic changes.

Economic experts predict that if inflation continues to hover around 2%, we may see the interest rate remain unchanged over the coming months. This also provides some security for borrowers, especially those with mortgages and personal loans.

Mortgage Calculation: Costs for Borrowers

For those considering taking out a mortgage, it is important to understand how the interest rate affects monthly costs. With a repo rate of 2.25% and an assumed bank margin of 1%, we can expect a total interest rate of 3.25% for mortgages.

• Mortgage of 1 million SEK: Approximately 2,708 SEK/month
• Mortgage of 3 million SEK: Approximately 8,125 SEK/month
• Mortgage of 5 million SEK: Approximately 13,542 SEK/month

For personal loans, which often have a higher interest rate than mortgages, it is important to compare different banks' offers and consider how the current interest rate affects loan costs.

Expectations for Food Prices, Fuel Prices, and Energy Prices

Inflation also affects everyday costs such as food, fuel, and energy. With the current stabilization of inflation, we can expect price increases in these areas to also slow down somewhat. However, it is important to note that external factors, such as global energy prices and weather conditions, can also impact these costs.

Summary

The latest inflation report shows a stabilization of KPIF inflation at 2.3%, which is a positive signal for both consumers and borrowers. With a stable repo rate of 2.25%, it seems we can expect continued stability in loan costs and a slowdown in price increases for everyday goods and services.