Consumer price index, 15 August 2012

The Consumer Price Index (CPI) was 130.0 (1998=100) as per August 2012, compared with 129.4 in the corresponding period in 2011. This was equivalent to a year-to-year growth of 0.5 per cent in August, up 0.3 percentage points from July. The year-to year growth in the CPI adjusted for tax changes and excluding energy products (CPI-ATE) was 1.2 per cent in August, down 0.1 percentage point from the previous month.

Large decrease in airline fares

The CPI fell by 0.4 per cent from July to August 2012. The main reason for the decline was a fall in airfares by 25.5 per cent. This relatively large price reduction has to be seen in conjunction with the almost identical price increase measured last period. Tickets to foreign destinations fell the most, but tickets to mainland destinations also showed a significant price decrease.

Prices of food fell by 1.6 per cent from July to August. Seasonal variations and sales activity contributed to the fact that all sub-groups showed a price decrease. The largest decrease was measured for vegetables, where prices went down 4.0 per cent. The prices of clothing fell by 2.4 per cent, mainly due to lower prices for men’s clothing, and some seasonal women’s clothing.

Higher electricity prices pulled the CPI in the opposite direction. Electricity including grid rent showed a 4.5 per cent price increase from July to August. Prices of fuels and lubricants rose 2.1 per cent. Higher prices for books and accommodation services also contributed to dampening the decrease in the CPI this month.

CPI rose 0.5 per cent from August 2011 to August 2012

The growth in the prices for operation of personal transport equipment was 3.8 per cent over the last twelve months. Other important reasons for the year-to-year growth in the CPI were increased prices of transport services and rentals. Airline fares were the sub-group inside transport services that increased the most, with prices up by 13.0 per cent. Passenger transport by road and boat showed price increases of 7.7 and 7.1 per cent respectively. Imputed rentals for housing rose by 1.5 per cent from August last year to August this year.

In the same period of time, financial services n.e.c. and catering services showed significant price increases, and contributed to the positive year-to-year growth in the CPI. The consumer group newspapers, books and stationery had a price increase of 5.8 per cent.

Prices of food and non-alcoholic beverages rose by 1.0 per cent, and contributed together with higher prices of alcoholic beverages and tobacco to the year-to-year growth in the CPI.

Prices for electricity including grid rent fell by 23.9 per cent from August 2011 to August 2012, and thereby had by far the most dampening effect in the CPI growth. Electricity prices fell the most, but the grid rent also showed lower prices. Audio-visual equipment and telephone services experienced a drop in prices of 7.7 and 4.8 per cent respectively.

Changed year-to-year growth

The year-to-year growth in the CPI rose from 0.2 per cent in July to 0.5 per cent in August. The main reason for the increase was that the prices of electricity including grid rent rose by 4.5 per cent from July to August this year, whereas the prices in the corresponding period last year dropped by 1.6 per cent. The price development in books and fuels and lubricants also contributed to pulling the year-to-year growth up.

The increased year-to-year growth was mainly dampened by a higher price increase in transportation services, particularly airline fares, from July to August this year compared to the same period last year.

Tables

Published tables