Published 25 May 2024 at 12.10
Economy. In 2023, Swedish households bought fewer goods and services than in 2022, but had to pay more for their purchases. In constant prices, consumption decreased by 2.6 percent compared to the previous year, but in current prices – where inflation is included – household consumption increased by 3.5 percent.
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TwittraShare– Virtually all areas of consumption declined in 2023 compared to 2022. We have not seen such a broad decline since the 1990s. Not even during the pandemic year 2020, says consumption researcher Ulrika Holmberg at the School of Economics at the University of Gothenburg, who is one of the editors of the Consumption Report.
The Consumption Report studies household spending in both fixed and current prices. It gives a picture of what changes mean in consumption volume (fixed prices) and how much more or less money consumers spend in a certain area (current prices).
In fixed prices, furniture, household items and maintenance decreased the most (minus 9 percent). Alcohol and tobacco decreased by 8 percent. Transport, communication, food, clothing and shoes also decreased (around 4 percent each).
– The high inflation during the year is an important explanation for the reduced consumption. The consumer price index (CPI) increased 8.5 percent in 2023. The prices for food and housing increased the most (12 percent each), two areas where households have large expenses. This means that the households have had to reduce the volume of consumption in order to have enough money, says Ulrika Holmberg.
One area that goes against the flow is Swedish households' consumption abroad, which mostly consists of trips abroad. In addition, other types of purchases from abroad such as streaming and internet purchases are included. The category increased by 2 percent in constant prices compared to 2022. Compared to 2021, when travel was limited by the pandemic, consumption abroad is 40 percent higher in 2023.