Those numbers are pretty decent in the XC40's class, as the slightly more expensive, $35,900 BMW X1 xDrive28i does slightly poorer: 22 city, 31 highway, 25 combined. The $35k Audi Q3 quattro has even worse figures, at 20 mpg city, 28 mpg highway, 23 mpg combined.
And if you were to do some savings by choosing a cheaper vehicle like the $28,490 (Touring spec) to $31,920 (Grand Touring spec) Mazda CX-5 AWD with its non-turbo 2.5 SkyActiv engine, you would benefit from slightly better fuel economy in the city — the Mazda gets 24 mpg in the city, but only 30 mpg on the highway, and the combined mileage matches the Volvo at 26. Of course, the Mazda's engine only produces 184 hp against the Volvo's significantly more powerful turbo unit, while the Audi Q3's TFSI engine offers 200 hp and the BMW's similarly two-liter turbo has 231 hp.
Finally, one interesting comparison can be done with the Mercedes-Benz GLA250 4matic: the $35,400 MSRP and the fuel economy of the Benz match the Volvo at 23 city, 31 highway and 26 combined. But the GLA250 is down on power compared to the Volvo; The Benz's 208-horsepower turbo four has a 40-hp deficit.