Consumer price index, 15 September 2007

The CPI was 118.6 (1998=100) per September 2007 compared with 119.0 at the same time last year. This is equivalent to a fall of 0.3 per cent, and down by 0.7 percentage points from last month. The year-to-year growth in the CPI-ATE was 1.6 per cent in September, down by 0.2 percentage points from August.

0.3 per cent fall in prices during last twelve months

Electricity prices were the main driver behind the negative year-to-year growth in the CPI in September 2007. The price of electricity fell continuously between September 2006 and August 2007. Despite a marginal price rise from August to September this year, electricity tariffs including the cost of electricity transport were 42.8 per cent lower in September 2007 than in the same period last year. A similar price development was seen in the first months of 2004, which was the previous occurrence of negative year-to-year growth.

Lower prices of clothing also contributed to the fall in the CPI in the last twelve months. The clothing prices were 6.4 per cent lower compared with same period last year. Audiovisual equipment fell by 6.0 per cent from September 2006.

Pulling in opposite direction are prices of goods and services connected to maintenance and repair of dwellings, which rose by 8.2 per cent and 5.2 per cent respectively. Prices of food and non-alcoholic beverages increased by 3.0 per cent. In addition, various services, such as transport services, services related to recreation and culture as well as accommodation and restaurants showed a price increase.

Price increase after sales

The CPI increased by 0.7 per cent from August to September mainly due to higher prices on clothing and footwear. After strong summer sales, prices of clothing and footwear increased by 6.4 per cent and 3.9 per cent respectively from August to September.

Other contributors to the CPI growth were airline fares, which increased by 18.1 per cent from August to September following a 7.6 per cent fall last month. Educational expenditures rose by 1.4 per cent since the last survey in January 2007.

With a price decline of 1.2 per cent, petrol prices were the main dampening factor behind the price growth.

Decrease in year-to-year change

The year-to-year change in the CPI fell from 0.4 per cent in August to -0.3 per cent in September. The substantial decrease is led by the development in electricity tariffs. From August to September 2007 electricity tariffs including the cost of electricity transport rose marginally by 0.7 per cent, in comparison to the 21.0 per cent increase in the same period last year.

The CPI adjusted for tax changes (CPI-AT) fell from 0.3 per cent in August to -0.6 per cent in September. CPI-ATE fell from 1.8 per cent in August to 1.6 per cent in September.