Consumer price index, 15 August 2009

The consumer price index (CPI) was 125.4 (1998=100) as per August 2009 compared to 123.1 in August 2008. This is equivalent to a year-to-year growth of 1.9 per cent in August, down from 2.2 per cent in July. The year-to-year growth in the CPI adjusted for tax changes and excluding energy products (CPI-ATE) was 2.3 per cent in August 2009, down from 2.5 per cent in July.

Lower prices on food and clothing

The prices on food and non-alcoholic beverages fell by 1.0 per cent from July to August. This can be explained by lower prices on fish and fresh vegetables together with sales campaign on cheese. The prices on coffee and juice fell most among non-alcoholic beverages. Continued sales activity on clothing gave a price reduction by 2.4 per cent from July to August. From May to August 2009 the prices on clothing fell by 9.3 per cent all together. This is about the same price decline as we have seen in the same period previous years. In average the airline fares decreased by 8.9 per cent from July to August. After the strong increase on airline fares from May to June, the prices are now at the same level as in May.

From July to August the prices on fuels and lubricants had an increase by 2.0 per cent. The prices on hotel services had a growth by 10.1 per cent, due to sales campaign in July. The fee for day care services in elementary schools and kindergarten had a minor growth by 0.5 per cent in August. See article on kindergarten. The prices on dental services showed an increase by 2.1 per cent.

The year-to-year growth was 1.9 per cent

The CPI rose by 1.9 per cent from August 2008 to August 2009. Actual rentals paid by tenant and imputed rentals for owner-occupiers increased by 3.6 and 3.3 per cent respectively, and contributed most to the year-to-year growth in CPI. The prices on food and non-alcoholic beverages increased by 3.4 per cent the last twelve months, due to strong year-to-year growth on pasta, milk, yoghurt and cream, egg together with mineral water and soft drinks. In addition the prices on a number of services rose within restaurants, package holidays, culture and recreation together with transport.

The prices on telecommunication services and clothing fell by 11.5 and 3.5 respectively in the period from August 2008 to August 2009. Electricity including grid rent together with fuel and lubricants had a price reduction by 4.7 and 4.6 per cent respectively in the same period.

The year-to-year growth fell 0.3 percentage points from July to August

The year-to-year growth fell from 2.2 per cent in July to 1.9 per cent in August. The price decline can be explained among others by price development of electricity. The prices of electricity including grid rent rose by 9.0 per cent from July to August 2008, while they decreased by 0.9 per cent in the same period in 2009.

The year-to-year growth in the CPI-ATE decreased from 2.5 per cent in July 2009 to 2.3 per cent in August 2009. The most important factors behind the decline were the price fall on transport services and clothing, together with small decrease for rentals.