Sweden’s annual inflation rate rose to 1.1% in August 2025, up from 0.8% in July, confirming preliminary estimates. This was the highest reading since February, though still below the Riksbank’s 2% target. Price growth increased for clothing and footwear (3.2% vs 2.4% in July) and miscellaneous goods and services (3.8% vs 3.7%). Downward pressure came from slower inflation for food and non-alcoholic beverages (4.7% vs 5.1%), restaurants and hotels (2.9% vs 3.1%), and recreation and culture (2.5% vs 5.1%), while declines persisted in housing, water, electricity, gas, and other fuels (-1.9% vs -3.4%) and transport (-1.4% vs -2.7%). On a monthly basis, consumer prices fell 0.4%, the first decline in five months, reversing a 0.2% rise in July, in line with flash data. Meanwhile, the CPI with a fixed interest rate (CPIF), the Riksbank’s target measure, grew 3.2% year-on-year in August, the fastest increase since January 2024, following a 3% rise in July.