This study proposes a “new" consumer price index (CPI) and investigates the influence of Sweden's monetary policy on the new index level and its variations over time. Unlike the traditional CPI that the SCB uses, the "new" CPI tries to consider technology improvements by using macro data. The research demonstrates that the "new" CPI resulted in less inflation than the traditional CPI computed from 1981 to 2020. The research predicts that the difference between the two CPIs would keep growing through 2020–2024, indicating that using the "new" CPI will lead to a more conservative approach to monetary policy. The findings suggest that policymakers should update the CPI regularly to reflect changes in consumer behavior and technological advancement, acknowledge the uncertainty associated with forecasting inflation, and be transparent with the public about the limitations of forecasting models. This study emphasizes the potential benefits of incorporating technology improvements into the CPI and its influence on monetary policy.