Consumer price index, 15 December 2011

The Consumer price index (CPI) was 130.6 (1998=100) as per December 2011, compared with 130.4 in December 2010. This was equivalent to a year-to-year growth of 0.2 per cent in December 2011, down 1.0 percentage points from November. The year-to year growth in the CPI-ATE was 1.0 per cent in December 2011, unchanged from the previous month.

Small changes in prices from November to December 2011

The CPI rose by 0.1 per cent from November to December. Airline fares contributed most to the rise with an increase of 11.0 per cent in December. An increase in taxi fares was also registered since the last time it was measured. Prices of books went up by 6.8 per cent from November to December.

As a result of falling spot prices, electricity including grid rent fell by 3.2 per cent from November to December 2011, contributing to the rise in the CPI. Additionally, decreases in prices were measured for clothing and non-alcoholic beverages.

Close to no-growth from December 2010 to December 2011

The CPI rose by 0.2 per cent from December 2010 to December 2011. An important contributor to the weak year-to-year growth was the development of electricity prices. Electricity prices including grid rent were 28.2 per cent lower in December 2011 compared to December 2010. The rise in CPI excluding electricity (CPI-AEL) was 1.3 per cent in the same period. Decreased prices of audio visual equipment and food also contributed to dampen the year-to-year growth in the CPI.

Imputed rentals for owner-occupiers and prices of restaurant services were registered with increases of 1.7 and 3.9 per cent respectively, and contributed to pull the year-to-year growth in CPI up. Prices of tobacco went up by 7.8 per cent, while non-alcoholic and alcoholic beverage prices increased by 7.2 and 5.3 per cent respectively.

Strong decrease in the year-to-year growth

The year-to-year growth in the CPI fell from 1.2 per cent in November to 0.2 per cent in December 2011. The main cause of the fall was that the electricity prices including grid rent fell 3.2 per cent from November to December 2011, while rising 19.9 per cent in the same period the previous year. Prices of fuels and lubricant also showed a small decline from November to December 2011 while increasing in the same period the year before.

The year-to-year growth in the CPI-ATE was 1.0 per cent in December 2011, unchanged from November 2011.

Annual growth of 1.2 per cent

Annual growth in the CPI was 1.2 per cent from 2010 to 2011. It was especially the price development of audio visual equipment together with electricity including grid rent that contributed to the low annual growth. Prices of audio visual equipment continued falling in 2011, ending at 7.2 per cent for the whole year. Lower electricity prices for households in 2011 than in 2010 can be seen in relation to higher water inflow to the reservoirs due to heavy precipitation combined with lower consumption of electricity in 2011. See producer price index (PPI) for more information . A decline in prices of food and clothing also contributed to dampening the annual growth in the CPI.

Important factors that pulled up the annual growth in the CPI in 2011 were increased prices of alcoholic beverages and tobacco, imputed rentals for owner-occupiers and prices of fuels and lubricants.

The annual growth in the CPI-ATE ended at 0.9 per cent in 2011.

Tables

Published tables