Consumer price index, 15 January 2001

In January 2001 the CPI was 107.6 (1998=100), while in January 2000 it was 104.1.

There are several changes in commodity taxes in January every year. In addition, this year the overall value added tax (VAT) was changed from 23 to 24 per cent. The increase explains some of the rise in the consumer prices during the last month.

Price increase from December 2000 to January 2001

The main contributor to the monthly change was an increased electricity tariff of 10.2 per cent. The increase was among other things due to a jump in the electricity tax. Rentals for housing rose by 1.3 per cent while costs for owner occupied housing showed an increase of approximately 1 per cent. Higher prices of products and services for maintenance of dwellings also influenced the all-item index.

Increased transport costs as a result of a rise in the prices of new cars and passenger transport by road, air and railway contributed to the price change last month. On the other hand, prices of petrol went down by 5.3 per cent as a result of lower taxes.

Higher prices of food, hairdressing and some appliances for personal care also played a role in the total price increase from December to January. As a consequence of higher taxes, the prices of tobacco rose by 3.1 per cent.

The prices of clothing and footwear went down 5.7 per cent as a result of the traditional January sales. The prices of clothing showed a larger decline than the prices of footwear. Sales caused a reduction in the prices of furniture and household appliances as well. A drop in the prices of tele equipment and -services also curbed the price increase in the all-item index.

Year-to-year change

From January 2000 to January 2001 the CPI increased 3.4 per cent. Higher rentals for housing and a sharp increase in prices of energy products are major contributors to the price growth. Electricity tariffs are more than 8 per cent higher than the prices in January last year , and the prices of paraffin and heating oil have risen by 15.7 per cent. Increased prices of services and products for maintenance and repair of dwellings have also contributed to the increased housing expenses.

The price index for transport has increased by 4.5 per cent. This is due to a rise in prices of cars at 3.1 per cent and a sharp increase in prices of airline tickets and passenger transport by bus and taxi. Airline tickets have increased by 21.5 per cent while passenger transport by road has gone up by 10.7 per cent. Petrol prices had remarkable high year-to -year change rates throughout 2000, but started to decrease at the end of 2000. And with the fall in January the prices are approximately down at the same level as in January last year. As mentioned above much of the decrease from December 2000 to January 2001 came as a result of a reduction in the petrol taxes.

The year-to-year change in food prices went up from 2.1 per cent in December 2000 to 3.0 per cent in January 2001, and are now a significant contributor the increase in the all-item index.

Lower prices of electric articles, telephone equipment and services have offset the price increase. In particular the prices of IT-equipment have decreased during the last 12 months.

The year-to-year growth increased from 3.0 per cent in December to 3.4 per cent in January. This was mainly due to the price development of clothes, food, cars, passenger transports and electricity. The sharp fall in petrol prices in January was the main offsetting factor to the increase in the year-to year change.