Consumer price index, 15 November 2001

In November 2001 the CPI stood at 108.7 (1998=100), in comparison to 106.8 in November 2000. CPI adjusted for tax changes and excluding energy products (CPI-ATE) was 2.5 per cent measured by the year-to-year change in November.

Price change from October to November: Prices up 0.1 per cent

An increase in the housing expenses was one of the main contributors to the rise in the CPI in November. Rentals for housing went up 0.4 per cent, while the costs for owner-occupied housing increased by 0.6 per cent. The tariffs on electricity declined only slightly in November by 0.1 per cent. In the same period last year the tariffs increased by 6.1 per cent.

The prices of clothing and footwear went up 0.7 per cent in November. The price of footwear increased the most. The price level for clothing and footwear in November was somewhat higher than in May and June.

The petrol prices continued to decline in November by 4.3 per cent. This development was the main contributor to moderate the growth in the CPI in November. Petrol prices have fallen considerably since May. The prices on transport services on pulled in the opposite direction.

The prices of food fell slightly in November by 0.1 per cent mainly due to a decline in the prices of fresh fruit and vegetables. In contrast, the prices of several dairy products increased, most likely as a result of the agricultural agreement.

Year-to-year change: Still high tariffs on electricity

The CPI increased by 1.8 per cent from November 2000 to November 2001. This is the lowest year-to-year growth since December 1996. The main contributor to the growth in the CPI is the increased tariffs on electricity. Even though the tariffs on electricity have experienced a slight fall during the last couple of months, the tariffs were 22.6 per cent higher in November compared to the same period last year. CPI excluding electricity was 0.9 per cent measured by the year-to-year change in November.

Higher prices of hairdressing and some appliances for personal care also contributed to the year-to-year growth in November, as well as insurance expenditure.

The rise in the transport sector was a result of a strong increase in the prices on passenger transport by air. During the last 12 months the airline fares have gone up 22.9 per cent. The increase in the prices of vehicles and maintenance and repair of personal transport equipments has also contributed to the growth in the CPI.

Strong decline in the petrol prices the last couple of months has reduced the contribution from the transport sector to the year-to-year growth. The petrol prices have fallen 18.4 per cent during the last 12 months. The CPI excluding energy products (CPI-AE) has increased by 1.7 per cent since November last year.

The prices on catering- and accommodation services have also contributed to the growth in CPI. The catering services have risen by 4.3 per cent and were the main contributor.

Due to a reduction in the value added taxes, prices on food and non-alcoholic beverages caused a decline in the year-to-year growth of almost 0.8 percentage points. The prices have decreased by 6.5 per cent during the last 12 months.

In addition to reduced prices on food and non-alcoholic beverages and petrol, lower prices on audio-visual equipments, telephone products, clothing and footwear have dampened the price increase in November.

The CPI-AT was 2.5 per cent measured by the year-to-year change in November. The changes in real taxes therefore pulled the consumer price growth down by 0.7 percentage points, the same as in October. The year-to-year change in the CPI-ATE was 2.5 per cent in November, unchanged from October.

The year-to-year growth in the CPI fell from 2.2 per cent in October to 1.8 per cent in November. This was mainly due to the price developments of electricity and petrol. The tariffs on electricity decreased, as mentioned earlier, slightly in November this year, in contrast to a strong increase of 6.1 per cent in November last year. Petrol prices fell strongly in November this year compared to a slight increase in the same period last year. The price development of clothing and footwear pulled in the opposite direction.