Consumer price index, 15 January 2013

The Consumer Price Index (CPI) was 132.1 (1998=100) as per January 2013, compared with130.4 inJanuary 2012. This was equivalent to a year-to-year growth of 1.3 per cent in January, down 0.1 percentage points from December. The year-to year growth in the CPI adjusted for tax changes and excluding energy products (CPI-ATE) was 1.2 per cent in January, up 0.1 percentage points from December.

Monthly change – sales on clothes and furniture

The 0.2 per cent decline in the CPI from December 2012 to January 2013 was particularly due to sales activity in clothing. Prices of clothing fell by 8.7 per cent. Price reductions were registered for most categories of clothes. Footwear showed a price fall of 7.3 per cent in the same period. January sales for furniture, furnishings and decorations led to a 10.3 per cent fall in prices. Prices for package holidays went down by 4.6 per cent and book prices were measured to have 7.1 per cent lower prices.

Electricity prices including grid rent increased by 2.7 per cent and contributed to dampen the fall in the CPI from December to January. Imputed rentals for house owners and actual rentals for housing rose by 0.6 and 0.8 per cent respectively. Prices of non-alcoholic beverages rose by 3.4 per cent as a result of higher prices of coffee and soft drinks. Among other consumption groups with increased prices were cultural services together with maintenance and repair of personal transport. Increased prices were also measured for dental services and fees for before- and after-school care.

Minor price increases were measured for the kindergarten fees.

Prices of alcoholic beverages and tobacco rose by 1.3 and 2.4 per cent respectively from December 2012 to January 2013 and must be viewed in conjunction with the tax changes on tobacco and alcohol that were implemented on 1 January 2013. The change is mainly due to inflation-adjusted excise duties. The CPI adjusted for tax changes (CPI-AT) fell by 0.3 per cent from December to January. Thus, the changes in taxes in isolation contributed to pulling up the CPI by 0.1 percentage points.

Year-to-year growth – higher electricity prices

The CPI rose by 1.3 per cent from January 2012 to January 2013. Prices of electricity including grid rent showed an overall increase of 6.5 per cent. Imputed rentals for housing along with transport prices contributed with price increases of 1.9 and 5.9 per cent respectively in the same period.

Prices of restaurant services rose by 3.9 per cent, thus also contributing to the rise in the year-to-year growth in the CPI. Prices in maintenance and repair of personal transport rose by 1.9 per cent. Other groups contributing to the year-to-year growth were actual rentals for housing, cultural services, dental services, personal care, insurance and newspapers and periodicals.

Lower prices in telecommunication services, clothes and package holidays contributed to dampen the increase.

Change in the year-to-year growth – minor change

The year-to-year growth in the CPI fell by 0.1 percentage points, from 1.4 per cent in December 2012 to 1.3 per cent in January 2013. Financial services excluding insurance were the main cause of the decrease in the year-to-year growth. From December 2012 to January 2013, financial services showed a weaker growth compared to December 2011 to January 2012. Other contributors to the decline in the year-to-year growth were prices of furniture together with fuels and lubricants.

The year-to year growth in the CPI adjusted for tax changes and excluding energy products (CPI-ATE) was 1.2 per cent in January, up 0.1 percentage points from December.