Low inflation in entire European Economic Area

From February last year to February this year, the harmonized consumer price index compiled for international price comparisons rose by one per cent within the European Economic Area (EEA). The low inflation rate is attributed to cheaper communications and transport and slow growth in the prices of energy, clothing and footwear.

There are, however, still differences in the inflation rates of the EEA countries, although price increases have been evening out in recent years. Germany, Sweden and France reported the lowest 12-month inflation rate, while Greece, Portugal and Ireland saw the highest increase in prices.

Cheaper communications, transport, clothing and footwear
Communication prices in the EEA have fallen by 3.2 per cent over the past 12 months, while transport prices have declined by 0.1 per cent mainly because of lower gasoline prices.

Clothing and footwear price inflation has also been low and prices have declined in Ireland, Great Britain, Denmark, Iceland and Norway. In Norway, prices of clothing and shoes have fallen 4.3 per cent over the past 12 months. Clothing prices in Norway have been on the decline since the mid-1990s. A gradual lowering of customs and a pronounced increase in imports of clothing from low-cost countries are factors behind the declining prices in Norway in recent years. Another factor that has helped lower prices in Norway is the competition between the major retail clothing chains, which control 75 per cent of the market.

More expensive services and goods liable to excise duty
The cost of an education rose four per cent, the highest of any consumption group. Prices of other services such as health care and hotel and restaurant services also rose. Prices of excisable goods such as alcohol and tobacco rose by 3.3 per cent.

New Statistics
Harmonized consumer price indices EU/EEA, February 1999.
The statistics are published monthly in the Weekly Bulletin of Statistics. For more information contact: Bente.Rosnes@ssb.no, tel. +47 21 09 47 19 or Lasse.Sandberg@ssb.no, tel. +47 21 09 47 16.

Weekly Bulletin issue no. 13-14, 1999