Consumer price index, 15 October 2013

The CPI was 135.1 (1998=100) in October 2013, compared to 131.9 in the same month the year before.

Monthly change: higher prices of electricity and clothing

The CPI increased by 0.1 per cent from September to October. The most important contributor to this rise in the CPI was the higher electricity prices including grid rent, which rose 2.2 per cent since last month. Both the group clothing and shoes and furniture and furnishings showed a price increase of 1.5 per cent in October. Imputed rentals for home owners went up 0.3 per cent from September to October, while financial services, excluding insurance, rose 0.9 per cent in the same period.

Several consumption groups experienced lower prices in October than in September. Airfares fell 5.8 per cent, while prices of food and non-alcoholic beverages went down 0.3 per cent. Prices of fuels and lubricants for personal transport equipment decreased by 1.2 per cent and book prices fell 5.3 per cent.

Year-to-year growth: strong growth in electricity prices still most important

The CPI rose by 2.4 per cent from October 2012 to October 2013. The main contributor to the year-to-year growth was the increase in prices of electricity including grid rent. In October, electricity prices including grid rent were 18.8 per cent above the price level of October last year.

Imputed rentals for home owners, which rose 3.9 per cent over the last twelve months, was one of the other main contributors to the rise in the CPI. Another important factor was food, with a price increase of 2.5 per cent. From October last year to October this year, actual rentals rose 4.5 per cent, while prices in restaurants showed a price increase of 2.7 per cent.

The most important contributor to dampening the increase in the CPI in the last twelve months was 3.2 per cent lower prices for clothing. Airfares fell 9.6 per cent year-over-year, and book prices went down 7.8 per cent in the same period.

Change in the year-to-year growth: CPI down, but CPI-ATE up

The year-to-year growth in the CPI fell from 2.8 per cent in September to 2.4 per cent in October. The main contributor to the decrease in the CPI was the price development of electricity. Prices of electricity including grid rent rose only 2.2 per cent from September to October this year, while increasing by 15.0 per cent in the same period last year. The development in the prices of books and telephone services also affected the drop in the year-to-year growth, with falling prices from September to October this year, but an increase in the same period last year.

The year-to year growth in the CPI adjusted for tax changes and excluding energy products (CPI-ATE) was 1.9 per cent in October; up 0.2 percentage points from 1.7 per cent the previous month. In this index, electricity is among others excluded, and the increase in October is mainly explained by the price development of food. Prices in this consumption group fell one percentage point less from September to October this year than in the same period last year.