Inflation

Inflation in February 2026: KPIF Falls to 1.7 Percent

Inflation, measured as KPIF, has now fallen to 1.7 percent in February 2026, placing it below the Riksbank's inflation target of 2 percent. KPI inflation is even lower, at a level of 0.6 percent for the same month, indicating continued low price pressure in the Swedish economy.

This Month's Figures

KPIF (Consumer Price Index with a fixed interest rate) was 1.7 percent in February 2026, a decrease from 2 percent in January. This means that inflation is now below the Riksbank's target of 2 percent. KPI (Consumer Price Index) stood at 0.6 percent in February, which is lower than KPIF. The difference is due to the fact that KPI is directly affected by changes in interest rates, whereas KPIF excludes interest rate effects.

What Does the Outcome Mean?

The lower inflation means that household purchasing power is stabilizing, as prices are not rising as quickly as before. For companies, the pressure to compensate for increased costs decreases, which can create better conditions for planning and investment. At the same time, low inflation means that the Riksbank can maintain or lower interest rates, which affects borrowing costs for both households and businesses.

Mortgage Examples and Personal Loans

With a repo rate of 1.75 percent, mortgage rates are directly affected. A common margin over the repo rate is approximately 1 percentage point. This means that a mortgage of 1 million SEK will have an estimated interest rate of around 2.75 percent, resulting in an interest cost of approximately 2,292 SEK per month. For a loan of 3 million SEK, the interest cost becomes around 6,875 SEK per month, and for 5 million SEK, around 11,458 SEK per month. These costs apply before amortization, which is added. Personal loans often have a higher margin, usually around 2.5 percentage points over the repo rate, making them significantly more expensive than mortgages.

History and Trends

The trend over the last twelve months shows that KPIF inflation has steadily declined from peak levels of 3.2–3.1 percent during the summer and autumn of 2025 to today's 1.7 percent. KPI has been even lower and has been below 1 percent since the turn of the year 2025/2026. The repo rate has been gradually lowered from peak levels around 4 percent in the spring of 2024 to the current 1.75 percent.

Forecast and Outlook

With KPIF below the inflation target and continued low KPI, price pressure may remain subdued in the future, especially if energy and food prices continue to develop stably. The Riksbank now has more room to weigh other factors than inflation, such as growth and the labor market, in its interest rate decisions.

Frequently Asked Questions About Inflation

• What is the difference between KPI and KPIF?
  KPI includes the effects of interest rate changes on households' mortgages, while KPIF excludes these and provides a better picture of the underlying price pressure.
• Why does the Riksbank focus on KPIF?
  KPIF is considered to give a more accurate picture of long-term inflation, as it is not affected by temporary interest rate changes.
• How does inflation affect mortgage rates?
  High inflation usually leads to higher interest rates, while low inflation can imply lower rates. This affects households' interest costs directly.
• What drives inflation in Sweden?
  Inflation is affected by factors such as energy prices, food prices, wage developments, and international economic conditions.
• How quickly can inflation normalize?
  Normalization of inflation occurs gradually and is influenced by both domestic and global factors, making the timeframe difficult to predict exactly.