Consumer price index, 15 June 2007

The CPI was 118.2 (1998=100) per June 2007 compared with 117.7 at the same time last year, which is equivalent to a growth of 0.4 per cent. The year-to-year growth in the CPI-ATE was 1.3 per cent in June.

Seasonal sales on clothing and furniture

The CPI decreased by 0.1 per cent from May to June. A strong contributor to the decrease was the seasonal sales on clothing, resulting in a decrease in prices of 1.7 per cent. Prices of furniture and carpets fell by 1.2 per cent, also as a result of sales activities.

The development in electricity prices was also a significant contributor to moderate the growth in prices. Electricity prices, including the cost of electricity transport, dropped 1.3 per cent from May to June. Airline fares fell by 2.3 per cent in the same period.

The decrease in prices was partly offset by an increase in food prices of 0.8 per cent, mainly due to sales of seasonal goods.

Low price growth in last twelve months

The CPI increased by 0.4 per cent from June 2006 to June 2007. Prices of products and services related to repair and maintenance of housing increased by 6.7 per cent and contributed strongly to the CPI growth. Prices of food rose by 2.6 per cent, and were also a contributing factor to the CPI growth. Most groups related to food experienced increased price, however processed meat was the main contributor to higher prices.

The electricity prices, including the cost of electricity transport, were 24.9 per cent lower in June 2007 than in the same period last year. Lower electricity prices contributed strongly to dampen the CPI growth. Prices of clothing fell by 5.4 per cent from June 2006 to June 2007.

Other drivers behind the year-to-year growth in the CPI come from higher prices of various services. Prices of recreation and culture services rose by 6.2 per cent, while prices of accommodation and restaurant services increased by 4.3 per cent in total. In addition, transport services also increased in the last twelve months.

The year-to-year growth in the CPI rose from 0.3 per cent in May to 0.4 per cent in June. The year-to-year growth in the CPI adjusted for tax changes (CPI-AT) increased from 0.1 per cent in May to 0.2 per cent in June.