Consumer price index, 15 May 2001

In May 2001 the CPI stood at 109.6 (1998=100), while in May 2000 it was 105.1.

Price increase from April to May 2001

The prices of petrol increased by 5.3 per cent last month, and were 8.4 per cent higher in May than in March.

The prices of food rose by 1.4 per cent from April to May. It was mainly caused by a seasonal increase in the prices of fresh vegetables and fruit. But it was also registered an increase in the prices of meat, fish and some other food products.

There has been an upward trend in the tariffs on electricity since September 2000, and the tariffs increased further by 0.7 per cent in May. Rentals for housing and costs for owner occupied-housing increased both by 0.2 per cent last month.

Year-to-year change

From May 2000 to May 2001 the CPI increased by 4.3 per cent. Increased tariffs on electricity are a major contributor to the price growth. The electricity tariffs were 36.0 per cent higher than in May last year. The year-to-year change in CPI excluding electricity was 3.1 per cent in May. Rentals for housing and costs for owner-occupied housing went up 4.2 and 4.7 per cent respectively.

Transport is another contributor to the all-item index. The prices of passenger transport by road and air have had a sharp increase during the last 12 months. The passenger transport by air has increased the most by 20.0 per cent. The prices of maintenance of vehicles have influenced the year to year change as well.

Changes in indirect taxes are estimated to contribute to a 0.6 percentage point increase in the CPI year-to-year change in the first half of 2001. A change in the general VAT rate from 23 per cent to 24 per cent gives alone a 0.6 percentage point contribution. While a raise in electricity taxes and a cut in fuel taxes offset each other and in total do not effect the CPI growth. It should be underlined that this is a model-based estimate.

The food prices have increased by 3.3 per cent last 12 months mainly caused by higher prices of fish, fresh meat and fruit.

Higher prices of hairdressing and some appliances for personal care and higher prices of different services for social protection also contributed to the year to year change last month.

Lower prices of telephone products, audio-visual equipment, clothing and footwear have reduced the price increase.

The year-to-year growth increased from 3.8 per cent in April to 4.3 per cent in May. This was mainly due to the price developments of petrol and food. The increase in tariffs on electricity made a contribution as well.