Consumer price index, 15 June 2013

The CPI was 133.8 (1998=100) in June 2013, compared to 131.1 in the same month the year before. This represents a year-to-year growth of 2.1 per cent, up 0.1 percentage points from May. The year-to-year growth in the CPI adjusted for taxes and excluding energy (CPI-ATE) was 1.4 per cent in June, unchanged from the previous month.

Monthly change: lower prices on airline tickets, electricity and furniture

From May to June, the CPI fell by 0.4 per cent. The 12.6 per cent decline in airfares, which was mainly due to a fall in the cost of domestic flights, was the greatest contributor to the fall in the CPI. The drop in airfares in June has to be viewed in conjunction with the measurement period in May coinciding with long weekends, thus contributing to a stronger price growth than usual for May. Electricity including grid rent showed a price fall of 2.6 per cent for May to June. Furniture and clothing prices dropped in the same period. The decline can be attributed to sales within the two consumption groups. The CPI was also pulled down by price reductions for telephone services.

The decline in the CPI was partly dampened by imputed rentals for home owners, which increased by 0.4 per cent from May to June. Prices on package holidays rose by 2.6 per cent since the last measurement.

Year-to-year growth: electricity prices contributed most

The CPI rose by 2.1 per cent from June 2012 to June 2013. The main contributor to the year-to-year growth was the 19.8 per cent increase in prices of electricity including grid rent. The year-to-year growth for electricity can be explained by lower electricity prices during the summer of 2012, which was due to a high production of hydropower.

Other important contributors to the growth in the CPI were imputed rentals for home owners, which rose by 3.2 per cent from June last year, while actual rental for housing went up by 3.7 per cent in the same period. Alcoholic beverages and tobacco showed a joint price increase of 4.4 per cent. The price for restaurant services went up by 3.3 per cent in the period, while prices of maintenance and repair of personal transportation equipment increased 4.1 per cent.

Clothing prices fell by 2.5 per cent from June 2012 to June 2013 and was the main contributor to dampening the increase in the CPI. Women’s clothing in particular showed lower prices in this period. Prices on telephone services fell by 2.8 per cent.

Change in the year-to-year growth: stable price growth

The year-to-year growth in the CPI rose from 2.0 per cent in May 2013 to 2.1 per cent in June 2013. The main contributor was the development in food prices. Food prices rose by 0.2 per cent from May to June this year, while falling 0.4 per cent in the same period last year. All of the energy goods contributed to the increased price growth, and especially the prices of electricity and petrol.

The index was pulled in the opposite direction by airfares and prices on telephone services, which showed a greater decline in prices from May to June 2013 than for the same period last year.

The year-to year growth in the CPI adjusted for tax changes and excluding energy products (CPI-ATE) was 1.4 per cent in June; the same as the previous month.