Consumer price index, 15 June 2001

In June 2001 the CPI stood at 109.7 (1998=100), while in June 2000 it was 105.7.

Price increase from May to June 2001: Influenced by lower petrol prices

The petrol prices increased by 5.3 per cent in May while the prices fell by 4.0 per cent in June and strongly influenced the all-item index.

Rentals for housing and costs for owner occupied-housing both increased by 0.3 per cent last month. The tariffs on electricity increased by 0.4 per cent.

The prices of food rose by 0.8 per cent and were mainly caused by a seasonal increase in the prices of fresh fruit and fresh vegetables. Especially the prices of potatoes, tomatoes and onions went up last month.

The prices of products and services for recreation and culture rose by 0.6 per cent in June, due to increased prices of package holidays.

Year-to-year change: 3.8 per cent rise

From June 2000 to June 2001 the CPI rose by 3.8 per cent. The increased tariffs on electricity are the major contributor to the price growth. The electricity tariffs have increased by 38.0 per cent during the last 12 months. The year-to-year change in the CPI excluding electricity was 2.5 per cent in June. Rentals for housing and costs for owner-occupied housing went up 3.9 and 4.6 per cent respectively.

Another contributor to the price growth is the transport sector. There has been a sharp increase in the prices of passenger transport by road and air 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 also influenced the year-to-year change.

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. (See "New regulation does not affect CPI")

The food prices have increased by 2.9 per cent last 12 months mainly caused by higher prices of fish, fresh meat and fresh 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 in June.

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

The year-to-year growth went from 4.3 per cent in May to 3.8 per cent in June. This fall was due to the development of the petrol prices.