Inflation

Inflation Remains Stable at Low Levels – What Does This Mean for Your Finances?

The latest figures from Statistics Sweden (SCB) show that inflation according to the CPI remained at 0.5 percent in February 2026, unchanged from January. At the same time, the underlying inflation rate, CPIF, fell to 1.7 percent from 2.0 percent. These levels are below the Riksbank's target of 2 percent, which affects household finances in several ways.

CPI and CPIF – Why Are There Two Figures?

CPI, the Consumer Price Index, shows how prices for goods and services change for consumers. CPIF is an adjusted measure that excludes the effect of changes in mortgage interest rates. Therefore, CPI is often lower than CPIF when interest rates have fallen, which is the case now. It is the CPIF that the Riksbank uses as a basis when making decisions regarding the policy rate.

Purchasing Power Strengthens When Inflation Is Low

Low inflation means that prices for most things are rising slowly, or hardly at all. For you as a consumer, this means that your salary goes further and that pensions and benefits retain their value better over time. It provides some relief after several years of rapidly rising prices.

• Food and daily necessities, as well as services, have not become noticeably more expensive in recent months.
• Prices for certain product groups may, however, still fluctuate more than the average, even during periods of low inflation.

Mortgage Rates and Savings – What Happens Now?

A CPIF below the Riksbank's target increases the likelihood that the policy rate will be lowered in the future. However, this is not a promise of a rate cut, but it does give the Riksbank some room to act if the low inflation persists.

• For those with variable-rate mortgages, this could mean that interest rates will eventually be lower, reducing monthly costs.
• For savers, low inflation means that money in savings accounts loses less purchasing power, but at the same time, interest rates on savings accounts are often low in such situations.

Economic Decisions to Consider in the Current Situation

• If you have a variable interest rate on your mortgage, it may be wise to follow the Riksbank's announcements in the coming period, but avoid counting on rapid cuts.
• Larger purchases or investments are less affected by price increases right now, which can make long-term planning easier.
• Savings in accounts do not lose value as quickly, but review whether you can achieve better returns in other ways if you have a surplus.
• For pensioners and wage earners, it is positive that purchasing power is preserved, but keep in mind that wage increases may be smaller when inflation is low.

The Economy at Large – Some Caution Remains

Despite low inflation, there are still some uncertainties in the economy. Unemployment stands at 5.8 percent, and public finances showed a deficit for 2025. Although household finances generally benefit from low inflation, different groups may be affected differently depending on where in the country they live and what their expenses are.

In summary, today's inflation situation provides a breather for households, but it is important to remain vigilant regarding how the Riksbank and banks choose to act in the future. Keep an eye on your interest rate and consider how you can adapt your financial decisions to an environment with both low price increases and low interest rates.