Consumer price index, 15 August 2006

CPI was 117.3 (1998=100) in August 2006, compared to 115.1 at the same time last year. This is equivalent to an increase of 1.9 per cent, a decrease from 2.2 per cent in July. The year-to-year growth in the CPI-ATE was 0.4 per cent in August, down from 0.6 per cent in July.

CPI fell from July to August

The CPI decreased by 0.1 per cent from July to August 2006. There were many components that contributed to the fall in the CPI. Prices of telephone services showed a decrease of 7.8 per cent. Prices of clothing and footwear fell further in August with an average price fall of 2.2 per cent, where footwear prices fell more than clothing prices. The prices of food decreased by 0.9 per cent, mainly due to lower prices of fresh fruit and vegetables. Furniture sales resulted in a price decrease of 2.2 percent. Audiovisual equipments had a price fall of 1.4 per cent from July to August.

Social protections services showed a soft fall of 1.0 per cent in august, due to lower kindergarten fees. See Kindergarten article ( Households payments in kindergarten. Rates of change. August 2006 )

In the opposite direction, prices of electricity increased by 7.2 per cent. After sales activity in July, the price of accommodation services increased by 6.5 per cent in August. Dental services registered a price increase of 2.1 per cent in August. Prices of dental services are measured in January and August every year.

Price increase in energy products in the last 12 months

CPI increased by 1.9 per cent from August 2005 to August 2006. The major contribution to the year-to-year growth came from energy products. Prices of electricity were 25.3 per cent over the prices at the same time last year. Petrol prices showed an increase of 10.6 per cent. The CPI excluding energy products (CPI-AE) increased by 0.5 in the same period.

Prices of a number of services were registered with an increase in the last 12 months. Prices of accommodation and health services increased by 9.8 and 5.9 per cent, respectively. There was also registered price increase of services connected to recreation, culture and transport.

It was mostly clothing prices that dampened the CPI growth in the last 12 months, with an average price fall of 7.4 per cent. Prices of audiovisual equipments decreased by 7.2 per cent. Prices of social protections services and telephone services decreased by 12.4 and 7.6 per cent, respectively, in the last 12 months.

Year-to-year growth from July to August

The year-to-year growth in CPI decreased from 2.2 per cent in July to 1.9 per cent in August. The decrease can be attributed to the price development in telephone services which decreased in August this year compared to no change in August last year. Clothing prices fell by 1.6 per cent in August this year, compared to an increase of 2.0 per cent in August last year. Price development in electricity and telephone equipments pulled in the opposite direction.

The year-to-year growth in CPI-ATE was 0.4 per cent in August against 0.6 per cent in July. The year-to-year growth in the CPI adjusted for tax changes (CPI-AT) went from 1.9 per cent in July to 1.6 per cent in August.

New weights in CPI

The weights in the CPI are revised yearly in August based on average expenditure shares. From August 2006 to July 2007 the weights are based on the Household Budget Survey in 2003, 2004 and 2005. See New weights .