Consumer price index, 15 May 2013

The CPI was 134.3 (1998=100) in May 2013, compared to 131.7 in the same month the year before.

This represents a year-to-year growth of 2.0 per cent, up 0.1 percentage points from April. The year-to-year growth in the CPI adjusted for taxes and excluding energy (CPI-ATE) was 1.4 per cent in May, down 0.1 percentage points from the month before.

Monthly change – higher prices on flights, food and rentals

From April to May, the CPI rose by 0.1 per cent. The greatest contributor was airfares, which increased by 18.6 per cent, mostly due to a rise in the cost of domestic flights. Food prices rose by 0.8 per cent and the largest price increases were measured for the groups fresh fruits, other bakery products and milk, cheese and eggs.

Imputed rentals for home owners went up 0.6 per cent from April to May, while actual rental for housing increased 0.5 per cent. Maintenance and repair of personal transportation equipment rose 0.6 per cent in the same period.

The main dampening effect on the increase in the CPI was the price development of electricity including grid rent, which fell by 6.1 per cent from April to May, and a price fall of 3.3 per cent on furniture, furnishings and decorative items etc.

Year-to-year growth – higher electricity prices contributed most

The CPI rose by 2.0 per cent from May 2012 to May 2013. The main contributor to the year-to-year growth was the 17.9 per cent increase in prices of electricity including grid rent. The CPI excluding electricity (CPI-AEL) rose by 1.2 per cent in the same period, thus the electricity prices accounted for 0.8 percentage points of the year-to-year growth in the CPI.

Other important contributors to the growth in the CPI were imputed rentals for home owners, which rose by 2.9 per cent from May last year, while actual rental for housing went up by 3.6 per cent. Alcoholic beverages and tobacco showed a joint price increase of 4.2 per cent. Airfares rose by 12.8 per cent in the last twelve months, while restaurant services showed a price increase of 3.4 per cent in the period. Other groups with rising prices were maintenance and repair of personal transportation equipment, recreational and cultural services and newspapers, books and stationary.

Clothing prices fell by 2.7 per cent in the last twelve moths and this was the strongest contributor to dampening the increase in the CPI. Prices on fuels and lubricants fell by 2.1 per cent in this period. Other dampening factors were lower prices measured for the groups furniture, furnishings and decorative items etc, audiovisual equipment, other recreational items and equipment etc. and package holidays.

Change in the year-to-year growth – increased price growth

The year-to-year growth in the CPI rose from 1.9 per cent in April 2013 to 2.0 per cent in May 2013. The price development of fuels and lubricants was the main cause of the increase in the year-to-year growth. From April to May 2013, prices rose, while falling significantly in the same period the year before. Imputed rentals for home owners showed a clear increase last month, while no change was measured from April to May last year. Airfares contributed with a stronger price increase from April to May this year than measured in the corresponding period in 2013.

The index was pulled in the opposite direction by food showing a weaker increase in prices from April to May this year than measured for the same period last year. The price development in furniture, furnishing etc. also contributed to dampening the positive year-to-year growth.

The year-to year growth in the CPI adjusted for tax changes and excluding energy products (CPI-ATE) was 1.4 per cent in May, down 0.1 percentage point from April.