Consumer price index, 15 July 2008

The consumer price index (CPI) was 123.0 (1998=100) per July 2008 compared with 117.9 at the same time last year. This is equivalent to a year-to-year growth of 4.3 per cent, up from 3.4 per cent in June. The CPI-ATE increased by 0.2 from June to July. The year-to year growth in the CPI-ATE was 2.9 per cent.

Higher prices of food, electricity and fuel

The CPI rose by 0.7 per cent from June to July. Food prices increased by 2.1 per cent. In particular, there was an increase in prices of meat, bread, cereals and dairy products. Prices of fresh vegetables pulled in the opposite direction, which can be explained by seasonal variations. In addition to higher food prices, prices of mineral water and soft drinks also rose from June to July.

The price of electricity including the cost of transport rose by 9.6 per cent, while prices of fuels and lubricants increased by 2.9 per cent. There was also a price increase on telecommunication equipment. The price of some newspapers also increased, but this mainly applied to single copy sales.

There was a large downward pressure from clothing where seasonal sales contributed to a 6.7 per cent fall in prices. There was also a downward pressure from hotel services and audio-visual equipment.

Highest year-to-year growth in five years

The CPI rose by 4.3 per cent from July 2007 to July 2008. This is the highest CPI increase since February 2003. The main contributor to the increase was higher prices of electricity, including the cost of transport, which has risen by 28.2 per cent. Other important factors behind the increase were operation of personal transport equipment and food, which have increased by 11.0 and 4.8 per cent respectively. Prices of services and goods in connection with recreational activities have also increased in the past twelve months.

Falling prices of clothing, audiovisual equipment and telephone services, contributed to dampen the year-to-year growth in the CPI.

Change in year-to-year growth

The rise in the year-to-year growth in the CPI from 3.4 per cent in June to 4.3 per cent in July was mainly due to the development in prices of electricity, food and fuel. These goods experienced a stronger increase in prices from June to July this year than in the same period last year.