Harmonized index of consumer prices, July 2002

The HICP fell 0.1 per cent from June to July. The decline was among other things caused by a seasonal decrease in the prices of clothing and footwear, hotel services and a reduction in the tariffs on electricity. The decrease was dampened by a price increase of food mainly as a result of the agricultural agreement as of 1 July. HICP went up 1.2 per cent during the last 12 months. The increase in the year-to-year growth compared to last month is mainly due to the elimination of the effect from the reduction in the VAT on food in July last year. See http://www.ssb.no/english/kpi_en/ for more details.

Change from May to June in the EEA area

The HICP for the EEA was 111.3 in June, the same as in May. Iceland faced the strongest increase in the consumer prices with 0.6 per cent. In Netherlands and Belgium the consumer prices decreased by 0.3 per cent.

The prices of food and non-alcoholic beverages declined in the EEA from May to June. The decrease was partly due to a strong reduction in the prices of vegetables in many of the countries in the EEA area. The prices of clothing and footwear as a total decreased only slightly from May to June. The prices of clothing showed a decline, while the prices of footwear went up. Except for Iceland, the prices of petrol decreased in all the countries in the EEA. The prices of transport services increased from May to June, particularly within passenger transport by air and sea. Rentals for housing increased slightly in the EEA.

Year-to-year change in the EEA

From June 2001 to June 2002 the EEA consumer prices went up by 1.6 per cent. Norway was in June as well, the only country in the EEA with decreasing consumer prices. Iceland and Ireland on the other hand, demonstrated growth rates of 4.7 and 4.5 per cent respectively.

From June 2001 to June 2002 the prices of alcoholic beverages and tobacco rose by 3.4 per cent in the EEA. Iceland, Spain and Greece contributed the most to the increase with growth rates of 8.5, 7.4 and 7.1 per cent respectively. The prices of food and non-alcoholic beverages went up as well in that period of time. The prices of clothing and footwear rose by 0.7 per cent from June 2001 to June 2002, of which the prices of footwear increased the most. Except for in Portugal, the prices of petrol declined in all the countries in the EEA area.

In advance, Eurostat estimated the year-to-year change in June in the Euro-zone to 1.7 per cent. While the actual price growth was 1.8 per cent. Expected growth in the consumer prices in the Euro-zone in July is 1.9 per cent. The HICP for the European Union (EU) increased by 1.6 per in June.