Consumer price index, 15 March 2010

The consumer price index (CPI) was 129.3 (1998=100) per March 2010, compared to 125.1 at the same time in 2009. This corresponds to a year-to-year growth of 3.4 per cent in March 2010, up from 3.0 per cent the previous month. The year-to year growth in the CPI-ATE was 1.7 per cent in March 2010, compared to 1.9 per cent in the previous month.

Continued rise in electricity prices

The CPI went up by 0.5 per cent from February to March 2010. The increase in electricity prices including grid tariff was, as the previous month, the main contributor to the rise in the CPI, with an increase of 5.4 per cent. Consumers did however face very different price changes depending on types of contracts - standard variable contracts rose considerably, while spot price contracts showed a considerable drop.

Higher prices of clothing and footwear also contributed to this month’s growth in the CPI, with prices rising 2.3 and 2.9 per cent respectively, after a period with sales activity. Fuels and lubricants rose 3.0 per cent, while prices of furniture and furnishing went up by 2.4 per cent.

The monthly growth in March was mainly dampened by a fall in book prices of 25.0 per cent.

Consumer prices up by 3.4 per cent last twelve months

The year-to-year growth in the CPI went up from 3.0 per cent in February to 3.4 per cent in March 2010.

An increase of 34.8 per cent in prices on electricity included grid tariff was the most important factor behind the year-to-year growth. Prices on fuels and lubricants went up by 16.6 per cent. Increased prices on recreational and cultural services, restaurants and package holidays also contributed to the growth.

Lower prices on clothing, telephone services and audio-visual equipment has had a dampening effect on the growth the past twelve months. It is also worth mentioning that prices of food showed zero growth this period. Except for the twelve months between July 2001 and June 2002 when the VAT was cut from 24 to 12 per cent, this has not occurred since January 1994.

The 0.4 percentage point rise in the year-to-year growth in the CPI was mainly caused by an increase in electricity prices of 5.4 per cent from February to March this year. In comparison, electricity prices decreased by 5.2 per cent in the same period last year. Prices on fuels and lubricants showed the same price pattern - prices fell this period last year and increased the same month this year, thereby also contributing to the increased year-to-year growth.

The year-to-year growth in the CPI-ATE declined 0.2 percentage point, from 1.9 per cent in February to 1.7 per cent in March. This development can be seen in relation to a sharper increase in prices on clothes and rentals from February to March last year than in the same period this year.

Tables

Published tables