Consumer price index, 15 September 2009

The consumer price index (CPI) was 126.4 (1998=100) per September 2009 compared with 124.9 at the same time last year. This is equivalent to a year-to-year growth of 1.2 per cent in September, down from 1.9 per cent in August. The fall in the year-to-year growth was mainly a result of decreasing electricity prices from August to September 2009, whereas these increased considerably in the same period last year.

The year-to year growth in the CPI-ATE was 2.4 per cent in September 2009, up 0.1 percentage points from 2.3 per cent in August.

Year-to-year growth in the CPI down 0.7 percentage points

The year-to-year growth in the CPI decreased 0.7 percentage points from August to September 2009, mostly explained by lower electricity prices. While the prices on electricity including grid rent rose by 13.5 percent from August to September in 2008 the change was negative with 4.6 per cent in the same period this year. In addition, imputed rentals for housing (owner-occupiers) and airline fares contributed to the lower year-to-year growth.

Price increase on clothing and footwear behind rise in the CPI

Prices on especially clothing and footwear increased in September after sales during the summer. An increase of 8.5 per cent from August to September implies that the price level is nearly the same as in May. Airline fares increased by 19.5 per cent from August to September, a somewhat weaker development compared with the same period last year. Food prices rose by 1.1 per cent and especially fresh fruit showed an increase. Prices on several services within recreation and culture are measured in September and showed a rise of 3.8 per cent. Other groups contributing to the growth was prices on books, furniture and education services.

Some important groups such as electricity and fuels had a price fall from August to September. Prices on electricity including grid rent decreased 4.6 per cent and fuel and lubricant prices by 1.2 per cent. Prices on audiovisual equipment fell by 1.3 per cent from last month.

Services and food prices behind year-to-year growth of 1.2 per cent

The CPI rose by 1.2 per cent from September 2008 to September 2009 mainly due to higher food prices and housing costs for owner-occupiers which rose by 4.0 and 2.8 per cent respectively. A general price increase among most services also contributed to the year-to-year growth. Prices on recreation and culture services increased 7.9 per cent, restaurant services by 4.6 per cent and package holidays by 5.6 per cent. There was also a price increase within pharmaceutical products and medical service expenditures as well as on other recreational items and equipment for gardening.

However, both electricity prices and prices on fuels and lubricants fell by 19.9 and 5.3 per cent respectively. Telecommunication services showed a decrease in prices by 10.7 per cent and clothing prices with 2.2 per cent.