CPI up 0.7 per cent last 12 months

The outbreak of the coronavirus and the restrictions introduced by the Government as of 12. March 2020 have consequences for both data collection and compilation of the Consumer Price Index (CPI). For more information, see How does the corona situation affect CPI?

The CPI increased by 0.7 per cent from March 2019 to March 2020. The increase was mainly caused by prices on food and imputed rentals for housing, which rose by 3.1 and 1.9 per cent respectively. In addition, price increases have been measured for most transport services, which led to an increase of 6.3 per cent for the group from March 2019 to March 2020.

The prices for electricity including grid rent contributed to lessen the rise in the CPI by decreasing 30.3 per cent from March 2019 to March 2020, the largest measured decrease in the twelve-month rate for this group since October 2007.

Falling fuel and electricity prices

The running twelve-month rate in the CPI fell from 0.9 per cent in February to 0.7 per cent in March, caused mainly by the price development for fuels and lubricants for personal transport equipment, as well as electricity. Fuels and lubricants for personal transport equipment showed a price decrease by 2.7 per cent from February to March this year, compared to an increase by 1.4 per cent the correspondent period last year. The price decrease registered on fuels can be seen in connection to the fall in the oil prices observed in March. The prices for electricity fell more from February to March this year, than they did in the same period last year.

The price development on food contributed to soften the decreasing growth rate for the CPI. The prices on food showed no change from February to March this year, while there was measured a price decrease by 0.9 per cent in the same period in 2019.

The twelve-year growth in the CPI-ATE was 2.1 per cent in March 2020, unchanged from February 2020.

No change in the CPI from February to March

The overall CPI was unchanged from February to March 2020. The prices for clothing and footwear rose by 4.9 per cent. There was also increased prices measured for the group furniture and furnishings, as well as passenger transport by air.

In addition, increased prices were measured for toll road and parking fees. In addition to general price changes, some cities introduced parking fees for electric cars.

Prices for electricity pulled in the opposite direction. The prices continued to fall in March. From February to March 2020, the prices for electricity including grid rent decreased by 7.3 per cent. In addition, market wide sales activity on books led to a fall in prices the same period.