Consumer price index, 15 March 2008

The consumer price index (CPI) was 122.0 (1998=100) per March 2008 compared with 118.2 at the same time last year. This is equivalent to a year-to-year growth of 3.2 per cent, down 0.5 per cent points from last month. The CPI-ATE increased by 0.6 per cent from February to March 2008.

Fall in electricity prices

The CPI increased by 0.1 per cent from February to March. Higher prices of clothing were the strongest contributor to the growth, rising by 4.0 per cent. Higher airline fares, higher prices of engine fuel and lubricants together with increased rentals also affected the CPI in an upward direction. The increase in airline fares was probably due to higher prices in connection with Easter.

Prices of electricity, including the cost of transport, contributed to dampen the monthly growth. The fall in electricity prices was 11.9 per cent, mainly caused by lower spot prices. Lower prices of books also contributed to dampen the monthly growth, most likely caused by seasonal sales. In addition, there was a decrease in prices of non-alcoholic beverages.

Fall in year-to-year change

The CPI increased by 3.2 per cent from March 2007 to March 2008. The electricity prices, including the cost of transport, were the main contributor to the growth. Despite a fall in electricity prices in March, the increase from March 2007 was 15.5 per cent. Higher airline fares and higher prices of engine fuel and lubricants also contributed to the increase in the year-to-year change.

Components that contributed to dampen the year-to-year growth were audio-visual equipment, telecom equipment and clothing.

The year-to-year growth in the CPI fell from 3.7 per cent in February to 3.2 per cent in March 2008. The change was mainly caused by the development in electricity prices.

The year-to-year growth in the CPI-ATE fell from 2.2 per cent in February to 2.1 per cent in March 2008.