Consumer price index, 15 March 2003

The CPI stood at 113.8 (1998=100) in March 2003 in comparison with 109.7 in March 2002.

The consumer prices down 0.7 per cent from February to March

The tariffs on electricity were the main contributor to the decrease in the consumer prices from February to March. Following a price decrease of 6.9 per cent in February the electricity tariffs fell even more in March by 14.2 per cent. Practically all suppliers reduced the tariffs from February to March.

A decrease in prices of motor cars and pharmaceutical products from February to March were also registered.

For several winter clothing products the sales activity continued and dampened the seasonal price increase of clothing in March. The clothing prices increased on average by 0.9 per cent, but the prices are still far under the December level. Prices of footwear rose by 1.2 per cent last month.

A price increase of petrol and fresh vegetables in addition to higher license fee on television, also contributed to moderate the price decrease in the CPI from February to March.

Year-to-year change: Tariffs on electricity contributed to price growth

The CPI increased by 3.7 per cent from March 2002 to March 2003. The tariffs on electricity were still the main contributor to the growth in the consumer prices. Despite a decrease in the tariffs on electricity in January and February they are 57.4 per cent higher compared with March last year. During the last 12 months the CPI excluding electricity has increased by 1.6 per cent.

During the last 12 months the costs for owner-occupied housing and rentals for housing have increased by 4.2 and 3.9 per cent respectively.

The first three months of 2003 petrol prices have increased, and are in March 8.7 per cent higher than in the same period last year. CPI excluding energy products (CPI-AE) has increased by 1.3 per cent from March last year to March this year.

Higher insurance premiums and increased prices of services connected to health care have contributed to the growth in the consumer prices. The prices of newspapers, books and stationery have increased as well.

The prices of clothing have declined by 11.1 per cent since March last year, and have contributed to moderate the growth in the consumer prices the last 12 months. As well did the prices of audiovisual equipment, passenger transport by air and telephone equipment.

The CPI adjusted for tax changes (CPI-AT) has increased by 3.9 per cent during the last 12 months. Tax changes therefore reduce the consumer price growth by 0.2 percentage points. From 2003 a value added tax of 12 per cent was introduced on the license fee on television.

Change in the year-to-year growth: Tariffs on electricity contributed to price decline

The year-to-year growth in the CPI went from 4.8 per cent in February to 3.7 per cent in March. The decline in the year-to-year growth can to a large extent be explained by the price development of tariffs on electricity and clothing. The tariffs on electricity was reduced by 14.2 per cent in March this year, in comparison to a decline of 7.0 per cent in the same period last year. The prices of clothing increased only marginally in March this year compared with a larger rise in March last year.

The decline in the year-to-year growth can also be explained by the price development of motor cars, petrol and rentals. The prices of motor cars decreased by 0.6 per cent in March this year in contrast to a slight price rise in March last year. At the same time, the petrol prices along with rentals experienced a smaller increase in March this year than in the same period last year.

The year-to-year growth in the CPI-ATE fell from 2.0 per cent in February to 1.5 per cent in March. The decline is, as mentioned above, mainly a result of the price development of clothing, motor cars and rentals.

Due to changes in methods of calculations the Retail Trade Price Index, according to The Standard Industrial Classification, was temporarily suspended 10 January 2002. From the 10 April 2003 the Retail Trade Price Index will again be published with the CPI.