Consumer price index, 15 July 2010

The consumer price index (CPI) was 128.1 (1998=100) per July 2010, compared to 125.7 per July 2009. This corresponds to a year-to-year growth of 1.9 per cent in July 2010, unchanged from the previous month. The year-to-year growth in the CPI-ATE was 1.3 per cent in July 2010.

Seasonal fall in prices on clothing

The CPI fell by 0.5 per cent from June to July 2010. The main contributor to the decline was sales activity on clothing and footwear which had a fall in prices of 6.3 per cent from last month. Prices on several women clothes fell more than prices on clothes for men, children and youth. Airline fares dropped by 23.0 per cent in July after a sharp rise in measured prices in June. Similarly to last July it was international flights that fell most in prices, but also domestic flights showed the same price pattern.

Prices on electricity including grid rent decreased 2.9 per cent from June to July. Additionally, a fall in prices were registered on accommodation services and books by 11.7 and 7.7 per cent respectively.

In the opposite direction, prices of food were measured to have increased by 0.7 per cent in July. This can be seen in the context of the upward revision of target prices from this year's Agricultural Settlement, which was implemented 1 July. Prices of recreational and cultural services contributed to dampen the fall in the CPI this month when the prices for the whole product group rose by 2.1 per cent. This is mostly due to expanded tax liability on culture and sports area, implemented on 1 of July, when VAT at a rate of 8.0 per cent was introduced. The CPI adjusted for tax changes (CPI-AT) and the CPI-ATE both decreased by 0.6 per cent from June to July. In the CPI-AT and the CPI-ATE only tax changes on final consumption is adjusted.

Year-to-year growth in the CPI

The CPI rose by 1.9 per cent the last twelve months. Among the most influential contributors were electricity including grid rent which rose by 13.4 per cent from July last year. Imputed rentals for housing increased by 2.3 per cent. Prices on services, maintenance of dwelling together with recreational and cultural services went up by 3.8 and 8.9 per cent respectively. Other increases in prices were registered on fuels and lubricants, and also restaurant services.

However, the year-to-year growth was dampened by falling prices on clothing and audio-visual equipment. The price development on food contributed in the same direction.

Tables

Published tables