Consumer price index, 15 October 2006

CPI was 119.1 (1998=100) in October 2006, compared to 116.0 at the same time last year, which is equivalent to a year-to-year growth of 2.7 per cent. The year-to-year growth in CPI-ATE was 0.7 per cent in October, up 0.2 percentage points from September.

Increase in prices of clothing and footwear from September to October

The CPI increased by 0.1 per cent from September to October. The largest contributor to the growth came from clothing and footwear, where the prices increased by 2.5 per cent. Including the increase of 7.9 per cent from August to September, the prices of clothing and footwear were in October at the same level as before the summer sale.

Another factor that contributed to the CPI growth from September to October was higher imputed- and actual rentals for housing. The prices of entry tickets for sporting events also increased significantly in October.

The price development in energy products contributed to dampen the CPI growth. This was the third month in a row that petrol prices decreased, and from September to October they dropped by 3.0 per cent. After a strong price increase in September, electricity prices fell by 1.2 per cent in October. Additionally, the prices in food and non-alcoholic beverages fell.

Strong price growth in electricity in the last 12 months

CPI rose by 2.7 per cent from October 2005 to October 2006. High tariffs of electricity continued to dominate the year-to-year growth in the CPI. The tariffs of electricity were a total of 47.4 per cent higher in October 2006 compared to October last year, and contributed with 1.7 percentage points to the total CPI growth.

The price increase in several services contributed to the year-to-year growth in the CPI. The prices of recreation and culture services increased by 6.8 per cent, transport and health services respectively by 5.0 and 5.9 per cent, and the prices in accommodation services rose by 11.0 per cent.

Prices of clothing and audiovisual equipment were the major contributors that dampened the last twelve months CPI growth with a price decrease of 5.5 and 8.5 per cent, respectively. Reduced kindergarten fees and telephone services also pulled down the CPI growth.

Increase in year-to-year growth in CPI and CPI-ATE

The year-to-year growth in CPI increased from 2.6 per cent in September to 2.7 per cent in October. The growth is due to, amongst others, the price development of clothing and footwear and rentals for housing. The prices of clothing and footwear showed a stronger growth from September to October this year compared to the same period last year. Imputed- and actual rentals for housing both increased by 0.5 per cent from September to October this year, whilst in the same period last year they increased by 0.1 per cent and no change, respectively.

The year-to-year growth in CPI-ATE rose from 0.5 to 0.7 per cent from September to October 2006.