Inflation

Inflation at 0.5% in February: What It Means for Households

Sweden's inflation rate according to CPI remained at 0.5 percent in February 2026, meaning that price increases continue at a very slow pace. At the same time, CPIF, a measure of inflation excluding direct effects of changes in mortgage interest rates, fell to 1.7 percent from 2.0 percent in January. After several years of high price increases, a period of stable and low inflation has now been established.

More Purchasing Power in Everyday Life

For households, the low inflation means that money goes further. Prices for goods such as food, clothing, and services are still rising, but significantly more slowly than before. Compared to recent years, where many noticed sharp price increases in stores, a certain relief can now be felt in the wallet.

• This does not mean that prices are falling – but price increases are small.
• The price base amount for 2026 has been adjusted upward by 0.5%, in line with inflation.

Mortgage Rates and the Riksbank's Dilemma

Low and stable inflation can increase pressure on the Riksbank to lower the policy rate. In the long run, this could lead to lower mortgage rates and lower costs for households with loans. At the same time, the Riksbank faces a dilemma: If the rate is lowered too quickly, inflation could pick up again, especially if there are unexpected price increases in areas such as energy or if global events affect the economy.

• CPIF is now below the Riksbank's target of 2%, but the trend is still close to the target level.
• The Riksbank may choose to wait with rate cuts if they see risks of inflation picking up again.

Savings and Major Economic Decisions

For those saving in a savings account, low inflation and a possible rate cut mean that returns may decrease in the future. At the same time, the stable price development provides better conditions for planning larger purchases or economic decisions, as the risk of sharp price increases is currently assessed as low.

• If you have a variable mortgage rate, a rate cut later on could mean lower costs.
• For savers in bank accounts, the interest rate may become lower if the policy rate is cut.

How Should Households Respond?

With low inflation, it is easier to get an overview of your finances and plan for both daily expenses and major decisions. Even though price increases are small, it remains important to follow the development, as unexpected events can affect inflation and thus household finances. Those with loans may have reason to keep an eye on the Riksbank's announcements regarding the policy rate, as changes can occur during the year.

• Do not expect prices to fall – but expect them to rise slowly.
• Follow the Riksbank's announcements on interest rates if you have a mortgage or save in an account.
• Be aware that international crises or rising raw material prices can quickly change the situation.