Inflation

Inflation at a Low Level – What It Means for Your Finances

February 2026 is characterized by stable and low inflation. According to the latest figures from Statistics Sweden (SCB), the inflation rate based on the CPI remained at 0.5 percent compared to the same month last year. At the same time, the CPIF, which takes interest costs into account, fell to 1.7 percent from 2.0 percent in January. The monthly change from January to February was 0.6 percent according to the CPI.

What does low inflation mean for household purchasing power?

An inflation rate of 0.5 percent means that price increases for goods and services are very moderate. Households therefore get more for their money than in previous years with higher inflation. For you as a consumer, this means that your salary goes further and that prices in stores are relatively stable. This provides better opportunities to plan your finances, especially for larger purchases.

Interest costs continue to affect households with loans

The CPIF, which includes the effect of interest rate changes on household costs, shows that interest costs remain a significant expense item. Even though the CPIF has dropped slightly, it remains at 1.7 percent, signaling that many households are still affected by previous interest rate hikes. For households with variable-rate mortgages or plans to take out new loans, it is important to monitor how the Riksbank (Swedish Central Bank) acts in the future, as their decisions on the policy rate are often driven by the CPIF rather than the CPI.

Savings and major financial decisions in the current situation

• Savings: Low inflation benefits those who save, especially if the interest rate on savings accounts exceeds 0.5%. However, real returns may be affected if interest rates are cut quickly, as the CPIF is still relatively high.
• Larger purchases: Stable price development makes it safer to plan for larger purchases, such as a car or a home, without risking that the price level will quickly spiral out of control.
• Loan decisions: Since interest costs remain high according to the CPIF, if you are considering taking out a loan, you should be aware that interest rates may remain at a high level for some time. Follow the Riksbank's announcements to time major loan decisions.

How to think ahead

• Distinguish between CPI and CPIF when analyzing inflation figures. The CPI shows general price development, while the CPIF better reflects households' total costs including interest.
• An inflation rate of 0.5% is an annual rate, meaning the change compared to the same month last year, not the sum for the entire year.
• If you have loans or plan to take out loans, focus on the CPIF and any potential interest rate announcements from the Riksbank – these affect your finances the most.

Summary of the situation

The low inflation gives households a respite after several years of high price increases. At the same time, interest costs remain a challenge for many, making it extra important to follow both inflation figures and interest rate announcements. For households with stable finances, low inflation opens up opportunities for increased savings and safer large purchases, but for those sensitive to interest rates, it is important to remain vigilant.