The previous world annual best was held by the British Anna Hopkin at 54.44.
Yesterday, 29-year-old Sjöström won the 50-meter butterfly in 25.25, which was the world best by 0.67.
The Dutch Marrit Steenbergen on the track next to her gave stiff resistance and was second in 53.84.
French Beryl Gastaldello was third in 53.86.
The three on the podium were in a class apart from the other swimmers who all came from France.
In the semi-final barely 1.5 hours before the final, Steenbergen was well ahead of Sjöström with 53.90 against the Swede's 54.76.
Sara Junevik had 13th time in the semi with 56.81.
Sjöström swam through the morning's attempt with 55.96 and only had the fifth best time there.
Again it was Steenbergen who was the best with 54.38.
Junevik took the last semi-final place with 57.33 as 16th.