Sweden Producer Prices Drop the Most in 17 Months

Producer prices in Sweden dropped 2.8% year-on-year in May 2025, deepening from a 2.4% fall in the previous month and marking the third consecutive month of deflation. This was the steepest decline since December 2023, primarily driven by sharper contractions in capital goods prices (-3.0% vs -1.0% in April) and intermediate goods (-4.0% vs -1.2%). Meanwhile, inflation in consumer goods remained subdued (0.1% vs 1.8%). Simultaneously, prices of energy-related products continued to decline but at a slower pace (-2.3% vs -13.4%), easing some downward pressure. Excluding energy-related products, producer prices shrank 2.9%, a sharper fall than a 0.6% decrease in April. On a monthly basis, the producer price index slipped 0.5%, easing from a 1.6% drop in April and marking the mildest fall in three months.