CPIF inflation fell to 0.7 percent in July, according to preliminary figures from Statistics Sweden (SCB).
"The fact that inflation is now falling is largely due to tax cuts," said Susanne Spector, chief economist at Danske Bank.
The fall is in line with expectations. Analysts had on average expected inflation to fall to 0.7 percent.
The new figure can be compared with 1.3 percent inflation in June.
"Energy prices fell sharply in July, which contributed to the lower inflation rate according to the CPI and CPIF," said Mikael Nordin, price statistician at SCB.
The unusually low inflation is influenced by, among other things, the temporary tax cut on fuel and the temporary government subsidy for monthly public transport passes that was introduced on July 1st.
"Inflationary pressure is low and highly dependent on the government's tax policy. Excluding this, it would have been closer to the inflation target of 2 percent," said Susanne Spector, chief economist at Danske Bank.
However, inflation is not so low that there is reason for the Riksbank to lower the interest rate, she said.
The inflation rate measured as the CPI fell to 0.2 percent, a decline from 0.7 percent in June.
The Riksbank's inflation target is a CPIF inflation rate of 2.0 percent. CPIF inflation rate refers to an inflation rate where the effects of mortgage interest have been removed.